Humana Q2 Earnings Rise, Beat Estimates; Backs Annual Adj. EPS Outlook Below View

(RTTNews) - Humana Inc. (HUM), a health insurance firm, on Wednesday reported a rise in earnings for the second-quarter, amidst an improvement in revenue. Excluding items, the company's earnings beat the Street view.

In addition, the insurance provider has affirmed its full year 2023 adjusted earnings per share outlook below the analysts' estimates.

For the three-month period, the company posted a pre-tax result of $1.262 billion, higher than $1.122 billion, recorded for the same period of previous year. Excluding items, pre-tax result stood at $1.470 billion, compared with last year's $1.448 billion.

EPS rose to $7.66 from previous year's $5.48 per share.

Excluding items, income per share was at $8.94, compared with $8.76 per share of 2022. On average, 21 analysts polled by Thomson Reuters were expecting HUM to post EPS of $8.82, for the quarter. Analysts' estimates typically exclude special items.

Insurance segment generated revenue of $25.875 billion higher than last year's $22.532 billion.

Revenue for the quarter increased to $26.747 billion from $23.662 billion a year ago, above the analysts' view of $26.23 billion.

Looking ahead, Bruce D. Broussard, CEO of Humana, said: "The strong growth of our individual Medicare Advantage business, now anticipated to grow by approximately 825,000 members in 2023 and reflecting an 18 percent growth rate, gives us further confidence in our ability to deliver strong earnings growth in the future..."

For full year 2023, the company expects post net EPS of at least $26.91 against its previous outlook of at least $27.88 per share.

Excluding items, the insurance firm still expects EPS of at least $28.25, below the analysts' view of $28.29 per share.