Humana Inc (HUM, Financial), one of the largest private health insurers in the U.S. with a focus on administering Medicare Advantage plans, reported its second-quarter earnings for 2024. The company specializes in government-sponsored programs, including Medicare Advantage, Medicaid, and the military's Tricare program, and is a leader in stand-alone prescription drug plans for seniors.
Performance Overview
Humana Inc (HUM, Financial) reported Q2 2024 earnings per share (EPS) of $5.62 on a GAAP basis, surpassing the analyst estimate of $5.60. However, the company's revenue for the quarter was $29,540 million, falling short of the estimated $30,514.69 million. Adjusted EPS for the quarter was $6.96.
Financial Achievements and Challenges
Humana Inc (HUM, Financial) reported consolidated revenues of $29,540 million for Q2 2024, a 10.4% increase from $26,747 million in Q2 2023. The company's adjusted revenues were $29,380 million, up from $25,733 million in the same period last year. Despite the revenue growth, the company faced challenges with its benefits expense ratio, which increased to 89.0% from 86.3% in Q2 2023.
Income Statement Highlights
| Metric | 2Q24 | 2Q23 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Revenues | $29,540 million | $26,747 million | $59,151 million | $53,489 million |
| Adjusted Revenues | $29,380 million | $25,733 million | $58,711 million | $51,385 million |
| Pretax Results | $918 million | $1,262 million | $1,932 million | $2,876 million |
| Adjusted Pretax Results | $1,128 million | $1,470 million | $2,319 million | $3,021 million |
| EPS | $5.62 | $7.66 | $11.74 | $17.54 |
| Adjusted EPS | $6.96 | $8.94 | $14.19 | $18.32 |
Balance Sheet and Cash Flow Highlights
Humana Inc (HUM, Financial) reported operating cash flows of $1,636 million for the first half of 2024, compared to $9,863 million in the same period last year. The company's debt-to-total capitalization ratio increased to 43.6% from 41.0% in Q2 2023. Parent company cash and short-term investments stood at $1,256 million, up from $1,109 million in the previous year.
Segment Performance
The Insurance segment reported revenues of $28,525 million for Q2 2024, up from $25,875 million in Q2 2023. The segment's benefits expense ratio increased to 89.5% from 86.8% in the same period last year. The CenterWell segment reported revenues of $4,947 million, up from $4,530 million in Q2 2023, with an operating cost ratio of 92.0%, slightly down from 92.6% in the previous year.
FY 2024 Earnings Guidance
Humana Inc (HUM, Financial) revised its GAAP EPS guidance for FY 2024 to approximately $12.81 from the previous estimate of $13.93. The company affirmed its adjusted EPS guidance of approximately $16.00 for the full year.
For more detailed information, please refer to Humana Inc (HUM, Financial)'s 8-K filing.
Explore the complete 8-K earnings release (here) from Humana Inc for further details.
