Cigna Group has officially denied rumors of a merger with Humana, reiterating its commitment to strategic acquisitions. The company also reaffirmed its projected full-year earnings and outlined plans for continued share repurchases, including the use of proceeds from the sale of its Medicare businesses.
Humana Inc. (HUM) exceeded analysts’ expectations for its third-quarter earnings, driven by strong growth in Medicare Advantage membership and higher per-member premiums. The company also raised its 2024 guidance for individual Medicare Advantage membership growth and earnings, but acknowledged challenges to its Medicare Advantage margin target due to the impact of the 2025 MA Star ratings.
Humana (HUM) is set to release its quarterly earnings report soon, and Wall Street analysts are predicting a decline in earnings per share. However, revenue is expected to grow significantly year-over-year. This article delves into the key metrics that analysts are watching closely and provides insights into what investors can expect.
Cigna and Humana have reignited merger discussions, potentially creating a major force in the health insurance industry. The deal, if finalized, would combine Cigna’s commercial insurance strengths with Humana’s dominance in Medicare Advantage, aiming to navigate the increasingly complex and competitive healthcare landscape.
Humana Inc. (HUM) shares have plummeted 30.2% in the past month, driven by a downgrade in Medicare Advantage plan ratings. This has raised concerns about the company’s future profitability and member growth. Despite the decline, some investors see this as a potential buying opportunity. However, with rising costs, debt, and a bearish outlook, caution is advised.
Humana, the health insurer, announced a quarterly net income of over $741 million on April 24, 2024. The company also revised its forecast upwards for the growth of its Medicare Advantage membership, a significant portion of their business. Medicare Advantage plans provide additional services and benefits to seniors, such as disease management and support hotlines. After reporting a loss in Q4 and facing higher medical costs in its Medicare Advantage business earlier this year, Humana’s recent report marks a positive turn. The company’s stock price has been affected by these previous reports.
Humana’s first-quarter net earnings were $741 million, or $6.11 per share, compared to $1.2 billion or $9.87 per share in the same quarter of 2023. The company also saw an increase in its Medicare Advantage membership, with 6.1 million enrollees at the end of the first quarter, compared to 5.6 million in the previous year’s quarter. This contributed to a rise in total revenue by over 10%, from $26.7 billion in the first quarter of 2023 to $29.6 billion this year.
Humana (HUM) reported better-than-expected Q1 results, with revenue growth of ~11% YoY to $29.6 billion. However, adjusted EPS fell ~23% YoY to $7.23 due to an increase in the benefit ratio, which rose to ~89% from ~86% a year ago. Despite this, the company reaffirmed its full-year EPS target of ~$16.00 and benefit ratio of ~90% for its insurance segment. However, it raised Medicare Advantage annual membership growth by 50,000 to 150,000. Humana also withdrew its previously issued 2025 guidance due to uncertainty surrounding Medicare’s recent final MA rate notice.
