Humana Shares Drop as Lowered Reported Profit Forecast Overshadows Q1 EPS Beat
HUM sits 31% above its 52-week low of $163.11.
Summary
Humana reported an adjusted quarterly earnings per share (EPS) of $10.31, surpassing analyst estimates of $10.19, driven by lower-than-expected medical service spending. However, the company's shares fell 4.45% pre-bell as it reaffirmed its annual adjusted profit forecast of at least $9, but *lowered* its reported profit forecast to "at least $8.36" from "at least $8.89". This revised reported outlook anticipates a year-over-year decline, primarily attributed to the impact of Medicare Advantage Star Ratings. The mixed guidance, particularly the reduction in reported profit expectations, is driving the negative market reaction despite the adjusted EPS beat. Traders will be watching for further details on the Star Ratings impact and future guidance.
At the time of this announcement, HUM was trading at $213.44 on NYSE in the Life Sciences sector, with a market capitalization of approximately $27.6B. The 52-week trading range was $163.11 to $315.35. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.