Humana Reports Mixed Results for Q4, EPS Beat but Short on Revenue
Image courtesy of 123rf.com Humana Inc. reported a net loss per share of $5.76 on a GAAP basis and an adjusted net loss per share of $2.16 for the fourth quarter of 2024. By Tim Fries Published on February 11, 2025 06:51 AM EST Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions. Humana Inc. (NYSE: HUM) reported its financial results for the fourth quarter of 2024, showcasing significant challenges. The company recorded a net loss per share of $5.76 on a GAAP basis and an adjusted net loss per share of $2.16. This indicates a substantial downturn from the previous year, where the net loss per share was $4.42 on a GAAP basis and $0.11 on an adjusted basis. The insurance segment’s adjusted benefit ratio stood at 91.9 percent, reflecting a slight increase due to investments in Star Ratings, aligning with Humana’s expectations. The consolidated pretax results for the quarter ended December 31, 2024, showed a loss of $862 million under GAAP, a significant increase from the $591 million loss in the same period the previous year. On an adjusted basis, the loss was $296 million, compared to a $79 million income in the fourth quarter of 2023. Revenues for the quarter were $29.213 billion on a GAAP basis, up from $26.462 billion in the same quarter of the previous year. Adjusted revenues were $29.199 billion, compared to $25.734 billion in 4Q23. Humana Reports Mixed Fourth Quarter Results Humana’s performance in the fourth quarter of 2024 fell short of the expectations set for the quarter. The anticipated EPS was $-2.13, but the company reported an adjusted EPS of $-2.16, indicating a slight underperformance. Revenue expectations were not specified, but the reported GAAP revenue of $29.213 billion suggests a positive trend compared to previous periods, although the adjusted revenue was slightly lower at $29.199 billion. The insurance segment’s adjusted benefit ratio of 91.9 percent was in line with forecasts, suggesting stability in this area despite the overall financial challenges. However, the increased losses and the decline in the adjusted income from operations for the insurance segment, which fell to $575 million from $361 million in the previous year, highlight areas where expectations were not met. The company also faced impairment charges and the impact of exiting the employer group commercial medical products business, which contributed to the shortfall. Join our Telegram group and never miss a breaking digital asset story. Humana Focused on Recovery and Growth for 2025 Looking ahead, Humana has provided guidance for the full year 2025, projecting GAAP EPS of approximately $15.88, with an adjusted EPS of around $16.25. This forecast suggests a focus on recovery and growth, aiming to at least match the adjusted EPS of $16.21 reported for 2024. The company anticipates a decline in individual Medicare Advantage membership by approximately 550,000, or 10 percent, due to strategic exits from unprofitable plans and regions. Humana is committed to advancing its Medicaid and CenterWell strategies, which are expected to enhance earnings over the mid to long term. The company remains confident in its long-term strategy, emphasizing operational excellence and the pursuit of normalized margins in 2025. Despite the challenges, Humana is focused on maintaining its competitive edge and improving its financial performance in the coming year. Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing. About the author Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.