Humana Withdraws Its Already Lowered 2025 Profit Guidance
Portfolio Pulse from Vandana Singh
Humana Inc (NYSE:HUM) withdrew its 2025 profit forecast due to lower than expected Medicare Advantage reimbursement rates and a rise in medical benefit ratio to 88.9% in Q1. The company had previously lowered its 2025 Adjusted EPS growth target from $37 to $6-$10, but now finds even this revised target unachievable. Humana will provide more specific 2025 guidance later this year after finalizing pricing decisions for the 2025 Medicare Advantage bids.
April 24, 2024 | 6:18 pm
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Humana Inc withdraws its 2025 profit forecast due to disappointing Medicare Advantage reimbursement rates and a high medical benefit ratio, indicating a challenging financial outlook.
Humana's withdrawal of its 2025 profit forecast due to lower than expected Medicare Advantage reimbursement rates and a high medical benefit ratio directly impacts its financial outlook. This news is likely to negatively affect investor confidence and could lead to a short-term decrease in stock price, as evidenced by the 3.75% drop in shares. The company's acknowledgment of the unachievable revised EPS growth targets further exacerbates concerns over its future profitability.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100