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Compared to Estimates, Humana (HUM) Q4 Earnings: A Look at Key Metrics

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Humana (HUM - Free Report) reported $25.73 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 14.7%. EPS of -$0.11 for the same period compares to $1.62 a year ago.

The reported revenue represents a surprise of +1.35% over the Zacks Consensus Estimate of $25.39 billion. With the consensus EPS estimate being -$0.07, the EPS surprise was -57.14%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Humana performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Benefits Expense Ratio - Consolidated: 90.7% versus the six-analyst average estimate of 89.7%.
  • Medical Membership - Medicare Supplement: 307.2 thousand compared to the 300.17 thousand average estimate based on four analysts.
  • Medical Membership - Individual Medicare Advantage: 5,408.9 thousand versus the four-analyst average estimate of 5,431.05 thousand.
  • Medical Membership - Group Medicare Advantage: 509.6 thousand versus 507.88 thousand estimated by four analysts on average.
  • Revenues- Investment income (loss): $294 million versus the five-analyst average estimate of $286.75 million. The reported number represents a year-over-year change of +83.8%.
  • Revenues- Premiums: $25.13 billion versus $24.14 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +18.1% change.
  • CenterWell segment-Total Services revenue- External: $770 million versus the four-analyst average estimate of $745.89 million.
  • CenterWell segment- Total Intersegment revenues: $3.94 billion versus $3.96 billion estimated by four analysts on average.
  • Revenue- CenterWell: $4.71 billion versus $4.71 billion estimated by four analysts on average.
  • Insurance segment- Services revenue- Military and other: $223 million versus the four-analyst average estimate of $220.91 million.
  • Insurance segment - Intersegment revenues- Services: $1 million compared to the $9.25 million average estimate based on four analysts.
  • Insurance segment- Investment income: $166 million versus $152.31 million estimated by four analysts on average.
View all Key Company Metrics for Humana here>>>

Shares of Humana have returned -10.9% over the past month versus the Zacks S&P 500 composite's +2.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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