Humana Reports Q4 Results Amid Wider Losses and Revenue Growth

Humana faces challenges as it reports wider losses in Q4. The company expects adjusted EPS for 2025 to be in line with 2024, while revenue growth shows a complex picture.

Date: 11-02-2025

AI Rating: 5

Earnings Per Share (EPS)
Humana reported its fourth-quarter results with a notable headline figure. The company is anticipating adjusted earnings per share around $16.25 for fiscal 2025, which aligns closely with the projected EPS for fiscal 2024 of approximately $15.88. However, the reported loss of $5.76 per share in Q4 not only surpassed last year's loss of $4.42 but also exceeded analysts’ expectations of $2.12 loss per share.

Revenue Growth
The company reported a strong revenue increase of 10.4% year-over-year, reaching $29.213 billion, eclipsing the Street’s expectation of $28.84 billion. Adjusted revenues also demonstrated growth, climbing from $25.73 billion to $29.20 billion.

Membership Decline
Despite revenue growth, an important concern for investors is the expected decline in individual Medicare Advantage membership by approximately 10% or 550,000 members from 2024 levels. This move seems to stem from exiting unprofitable plans and regions, potentially impacting future revenue.

In summary, while revenue figures are positive, the wider-than-expected losses and expected membership decline could signal underlying challenges for Humana going forward. The outlook remains cautious as analysts have set their EPS expectations higher than the company's own guidance, prompting investors to carefully consider the implications of these results.

Stocks: HUM