Loading...
•
Jun 30, 2021
Humana Q2 2021 Earnings Report
Humana's financial performance in Q2 2021 reflected solid fundamentals, offset by COVID-19 impacts, with GAAP EPS of $4.55 and Adjusted EPS of $6.89.
Key Takeaways
Humana reported a GAAP EPS of $4.55 and an adjusted EPS of $6.89 for Q2 2021. The company maintains its full-year 2021 adjusted EPS financial guidance and reaffirms its expected individual Medicare Advantage membership growth range.
Reported 2Q21 earnings per diluted common share of $4.55 on a GAAP basis, $6.89 on an Adjusted basis.
Updated FY 2021 EPS guidance to a range of $24.97 to $25.47 on a GAAP basis, maintains $21.25 to $21.75 on Adjusted basis.
Reaffirmed FY 2021 expected individual Medicare Advantage membership growth range of approximately 425,000 to 475,000 members.
Results reflect solid fundamentals in the company's businesses, offset by continued impacts of the COVID-19 pandemic.
Humana
Humana
Humana Revenue by Segment
Revenue by Segment
Insurance Revenue
CapyFin.com Forward Guidance
Humana is maintaining its FY 2021 Adjusted EPS guidance range of $21.25 to $21.75, while continuing to acknowledge the heightened uncertainty surrounding the ongoing pandemic as it respects COVID hospitalization trends and the rate at which non-COVID utilization normalizes.
Positive Outlook
- The revised GAAP EPS guidance reflects the YTD 2021 impact of the company's non-consolidating minority interest put/call valuation adjustments.
- The revised GAAP EPS guidance reflects the YTD 2021 change in the fair market value of publicly-traded equity securities held by the company.
- The revised GAAP EPS guidance reflects the estimated impact of transaction and integration costs associated with the pending Kindred at Home acquisition.
- The revised GAAP EPS guidance reflects a mark to market gain, currently expected to approximate $1 billion, associated with the company's existing 40 percent minority ownership of Kindred at Home.
- The company’s FY 2021 Adjusted EPS guidance assumes a $600 million COVID related headwind that is expected to be largely offset by favorable operating items.
Challenges Ahead
- Humana is revising its GAAP EPS guidance range for the year ending December 31, 2021 (FY 2021) to $24.97 to $25.47 from the previous range of $19.62 to $20.12.
- The company continues to acknowledge the heightened uncertainty surrounding the ongoing pandemic as it respects COVID hospitalization trends and the rate at which non-COVID utilization normalizes.
- The FY 2021 Adjusted EPS guidance assumes non-COVID utilization will run 2.5 percent below baseline in the back half of the year.
- The FY 2021 Adjusted EPS guidance includes an assumption of minimal COVID testing and treatment costs for the remainder of the year.
- The spread of, and response to, the novel coronavirus, or COVID-19, underscores certain risks Humana faces.