Humana Beats EPS Expectations for Q1
Despite the setback, Humana beat earnings expectations for the first quarter of 2024, reporting an adjusted earnings per share (EPS) of $7.23, surpassing the FactSet consensus estimate of $6.12. However, the company’s net income for the quarter declined to $1.01 billion from $1.61 billion a year ago, indicating a decrease in profitability compared to the previous year.Despite earlier warnings that higher medical costs could negatively impact future results, Humana has successfully kept its medical costs in line with projections. The company’s ability to manage these costs effectively has been a positive factor amidst the uncertainty surrounding the Medicare Advantage business.
Humana Stock Down 36%+ Over the Past Year
Looking ahead, Humana remains optimistic about the long-term performance of its Medicare business but has cautioned investors about potential challenges and the need for a recovery period to stabilize margins at 3% or higher.
The company’s leadership team is actively working on strategies to navigate the evolving healthcare landscape and maintain a strong market position.At the time of writing, Humana’s stock price stood at $311.28, reflecting the recent 5.09% decline. Over the past year, the company’s stock has underperformed significantly, with a decline of 36.10% compared to a 22.50% increase in the S&P 500.
Despite the recent volatility, Humana has a beta of approximately 0.74, indicating lower volatility compared to the broader market, and a Price/Earnings (TTM) ratio of around 16.40, suggesting a relatively reasonable valuation in the context of the healthcare sector.More By This Author:Microchip Technology’s Aviation Push And AI Deal Propel Shares HigherAT&T Inc. Reports $30 Billion in Revenue and $0.55 EPS for Q1 2024Tesla Stock Up 10% As Musk Promises Cheaper EVs And Robots
