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Jun 30, 2023

Humana Q2 2023 Earnings Report

Reported second quarter 2023 financial results and affirmed full year 2023 adjusted EPS guidance.

Key Takeaways

Humana reported a strong second quarter with an Adjusted EPS of $8.94 and affirmed its full year 2023 Adjusted EPS guidance of at least $28.25. The company's individual Medicare Advantage business is expected to grow by approximately 825,000 members in 2023, reflecting an 18 percent growth rate.

Reported 2Q23 earnings per share (EPS) of $7.66 on a GAAP basis, Adjusted EPS of $8.94; reports YTD 2023 EPS of $17.54 on a GAAP basis, $18.32 on an Adjusted basis

Revised FY 2023 EPS guidance to 'at least $26.91' on a GAAP basis, affirms FY 2023 Adjusted EPS of 'at least $28.25'

Raised 2023 individual Medicare Advantage membership growth by 50,000 to 'approximately 825,000', or 18 percent growth over FY 2022 ending membership, meaningfully higher than industry growth

Highlighted stabilizing Medicare Advantage utilization environment based on most recent claims activity; affirms FY 2023 Insurance segment benefit expense ratio guidance range of 86.3% to 87.3%

Total Revenue
$25.7B
Previous year: $23.7B
+8.5%
EPS
$8.94
Previous year: $8.67
+3.1%
Gross Profit
$23.6B
Previous year: $20.5B
+15.4%
Cash and Equivalents
$16.2B
Previous year: $800M
+1926.7%
Free Cash Flow
$2.91B
Previous year: $680M
+328.2%
Total Assets
$56.5B
Previous year: $46.8B
+20.6%

Humana

Humana

Forward Guidance

Humana revised its GAAP EPS guidance for the year ending December 31, 2023 (FY 2023) to 'at least $26.91' from 'at least $27.88', while affirming its Adjusted EPS guidance of 'at least $28.25'.