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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.
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Humana
Humana Revenue by Segment
Revenue by Segment
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CapyFin.com 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
- Potential restrictions on profitability
- The rapid development and fluidity of this situation precludes any prediction as to the ultimate adverse impact to Humana of COVID-19