humane (NYSE: HUM) shares traded slightly lower before the market on Wednesday despite fourth-quarter results that beat estimates.
Fourth quarter adjusted EPS rose +30.6% YoY to $1.62, while revenue rose +6.6% YoY to $22.44 billion. Both the top and bottom line exceeded analysts’ expectations.
The benefit expense ratio was 87.3%, compared to 87.9% in the fourth quarter of 2021.
A full year income in 2022 grew +11.8% YoY to USD 92.87 billion. The benefit expense ratio was 86.3%, compared to 86.7% in 2021.
“Humana is pleased to begin the year in a position of strength, with expected strong individual Medicare Advantage (MA) membership growth for 2023 of at least 625,000 for the year, a 13.7 percent year-over-year increase,” said the president Humane. and CEO Bruce Broussard.
During December 2022, Humana re-align certain of their own companies between its previously reported segments, Retail, Group & Specialty and Health Services, into two distinct segments: Insurance and CenterWell.
Income from Insurance segment up +7.2% YoY to $21.60 in the fourth quarter. The benefit expense ratio was 87.5%, compared to 88.5% in the fourth quarter of 2021.
CenterWell segment revenue rose +1.4% YoY to $4.14 billion.
Outlook in 2023:
Humana expects adjusted EPS of at least $28 ($28.01 consensus).
The company expects GAAP earnings per share to be at least $27.57. Full-year 2022 GAAP EPS was $22.08.
“Looking ahead, we are confident of achieving our 2025 adjusted EPS commitment of $37,” Broussard added. The consensus for 2025 is $37.13.
HUM -0.39% at $509.69 in pre-sale on February 1st