Insurance Giant Humana Stock Tumbles After Q2 Earnings Beat, Issues Sub Par Profit Outlook
Portfolio Pulse from Vandana Singh
Humana Inc (NYSE:HUM) reported Q2 earnings that beat expectations but issued a subpar profit outlook, causing its stock to tumble. The company posted adjusted EPS of $6.96, down from $8.94 a year ago, but above the consensus of $5.85. Revenues increased to $29.54 billion, driven by higher Medicare premiums and membership growth. Despite favorable claims development, higher inpatient admissions impacted results. Humana reaffirmed its 2024 adjusted EPS guidance of ~$16.00, below the consensus of $20.31, and expects a 2024 insurance segment benefit ratio of approximately 90%. HUM stock fell 6.32% following the announcement.
July 31, 2024 | 2:01 pm
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Humana Inc (NYSE:HUM) reported Q2 earnings that beat expectations but issued a subpar profit outlook, causing its stock to tumble. The company posted adjusted EPS of $6.96, down from $8.94 a year ago, but above the consensus of $5.85. Revenues increased to $29.54 billion, driven by higher Medicare premiums and membership growth. Despite favorable claims development, higher inpatient admissions impacted results. Humana reaffirmed its 2024 adjusted EPS guidance of ~$16.00, below the consensus of $20.31, and expects a 2024 insurance segment benefit ratio of approximately 90%. HUM stock fell 6.32% following the announcement.
Humana's Q2 earnings beat expectations, but the subpar profit outlook and reaffirmed 2024 EPS guidance below consensus led to a significant drop in stock price. The increase in revenues was overshadowed by higher inpatient admissions, impacting overall results.
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