- Humana projects its 2025 Adjusted Earnings Per Share (EPS) to be approximately $16.25, slightly below the estimate of $16.78.
- For overall EPS, Humana expects about $15.88, which is also below the projected estimate of $16.09.
- In the fourth quarter, the company reported an adjusted loss per share of $2.16, which was a smaller loss than the estimated $2.23.
- Revenue for the quarter was reported at $29.21 billion, marking a 10% increase compared to the previous year.
- Insurance revenue matched the overall revenue rise with a 10% year-over-year increase to $28.17 billion.
- Humana’s operating cost ratio slightly decreased to 14.4% from 14.6% year-over-year, although it was higher than the estimate of 13.3%.
- The benefit expense ratio stood at 91.5%, slightly above the anticipated estimate of 91.2%.
- The company maintains its previous outlook that the Adjusted EPS for the full year of 2025 will be at least in line with the 2024 results.
- Humana anticipates a decline in individual Medicare Advantage membership by approximately 550,000 members or about 10% from 2024, partly due to the exit from certain unprofitable plans and regions.
- Analysts’ recommendations on Humana include 8 buys, 18 holds, and 1 sell.
Humana Inc on Smartkarma
Analysts on Smartkarma, like those from Value Investors Club, have been bullish on Humana Inc. Their research highlights the company’s provision of Medicare Advantage plans to around 6 million members, emphasizing efficient and high-quality care through cost-saving measures and value-based relationships with providers. The report underscores Humana’s focus on preventive treatments and outcome-based payment models, demonstrating a commitment to enhancing healthcare delivery.
Similarly, insights from Baptista Research suggest that Humana could be a potential acquisition target for Cigna, a rival in the U.S. health insurance market. Recent reports indicate informal talks between the two companies, hinting at a possible merger. This news emerges amidst challenges for Humana in navigating changes in government Medicare plan ratings, impacting its overall performance. Analyst sentiment leans towards optimism regarding Humana’s strategic positioning and potential future developments.
A look at Humana Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Humana Inc., a managed health care company operating in the United States and Puerto Rico, holds an overall positive long-term outlook as indicated by its Smartkarma Smart Scores. With scores of 3 for Value, Dividend, Growth, Resilience, and Momentum, Humana Inc. demonstrates a balanced performance across key factors essential for company evaluation. The company’s focus on coordinated health care services through various health maintenance organizations and preferred provider organizations positions it well for sustained growth and resilience in the dynamic healthcare industry.
Humana Inc. caters to employer groups, government-sponsored plans, and individuals, showcasing its diversified customer base and strategic market positioning. The consistent scores in Value, Dividend, Growth, Resilience, and Momentum reflect the company’s stability and potential for future success. Investors looking for a company with a solid foundation and growth prospects may find Humana Inc. an attractive long-term investment opportunity based on its smart scores evaluation.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
