Humana Q4 2024 Earnings Report

Key Takeaways

Humana reported a net loss per share of $5.76 on a GAAP basis and an adjusted net loss per share of $2.16 for Q4 2024. The company generated $29.21 billion in revenue during the quarter, with an adjusted revenue of $29.20 billion. Operating income saw a significant decline, primarily due to impairment charges and value creation initiatives.

Total Revenue

$29.2B

Previous year: $26.5B

+10.4%

EPS

-$2.16

Previous year: -$0.11

+1863.6%

Medical Membership

17M

Specialty Membership

8.7M

Free Cash Flow

-$1.1B

Previous year: -$7.42B

-85.2%

Total Assets

$46.5B

Previous year: $47.1B

-1.2%

Humana Revenue

Humana EPS

Humana Revenue by Segment

Forward Guidance

Humana expects FY 2025 GAAP EPS of approximately $15.88 and Adjusted EPS of approximately $16.25, reaffirming its confidence in long-term strategy execution.

Positive Outlook

Affirms adjusted EPS guidance for FY 2025 to be in line with 2024 results.
Continued investment in operational excellence to support future earnings growth.
Expansion in Medicaid and CenterWell strategies expected to drive long-term earnings contribution.
Focused exit from unprofitable plans and counties to improve profitability.
Strong cost-saving initiatives to enhance efficiency.

Challenges Ahead

Expected decline of approximately 550,000 individual Medicare Advantage members.
Higher impairment charges impacting quarterly results.
Operational cost challenges in maintaining profitability.
Ongoing adjustments to insurance benefit ratios due to market conditions.
Potential legal and regulatory risks affecting financial outlook.