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Jun 30, 2020
Humana Q2 2020 Earnings Report
Humana's financial results for Q2 2020 were reported, with proactive relief efforts amid the pandemic.
Key Takeaways
Humana reported a strong second quarter with EPS of $13.75 on a GAAP basis and $12.56 on an adjusted basis. The company reaffirmed its FY 2020 Adjusted EPS guidance range of $18.25 to $18.75 and increased full year expected individual Medicare Advantage membership growth.
Humana continued actions to support members, providers, employees, and communities during the COVID-19 pandemic.
The company donated an additional $150 million to the Humana Foundation to address social determinants of health.
Humana reported 2Q20 EPS of $13.75 on a GAAP basis, and $12.56 on an Adjusted basis.
Full year expected individual Medicare Advantage membership growth increased to 330,000 to 360,000 members.
Revenue by Segment
Forward Guidance
Humana is revising its GAAP EPS guidance range for the year ending December 31, 2020 (FY 2020) to $17.36 to $17.86 and is maintaining its FY 2020 Adjusted EPS range of $18.25 to $18.75.
Positive Outlook
- FY 2020 GAAP EPS expected to be in a range of $17.36 to $17.86
- FY 2020 Adjusted EPS guidance range of $18.25 to $18.75 is maintained
- Individual Medicare Advantage membership growth is expected to be 330,000 to 360,000 members
- Group Medicare Advantage net membership gains are projected to increase approximately 90,000 members year over year
- Net membership decline of approximately 550,000 members is estimated for stand-alone PDP business
Challenges Ahead
- Inherent uncertainty surrounds the ongoing crisis
- Significant variability of results by financial statement line item
- Potential inadequacy of government determined payment rates
Historical Earnings Impact
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Avg. Return Before/After Earnings
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