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Humana (HUM) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
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For the quarter ended September 2023, Humana (HUM - Free Report) reported revenue of $25.53 billion, up 12% over the same period last year. EPS came in at $7.78, compared to $6.88 in the year-ago quarter.
The reported revenue represents a surprise of +0.63% over the Zacks Consensus Estimate of $25.37 billion. With the consensus EPS estimate being $7.15, the EPS surprise was +8.81%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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: 86.6% compared to the 86.7% average estimate based on six analysts.
Medical Membership - Medicare stand-alone PDP: 2,885.8 thousand versus the four-analyst average estimate of 2,881.75 thousand.
Medical Membership - State-based contracts and other: 1,264.6 thousand versus the four-analyst average estimate of 1,256.3 thousand.
Medical Membership - Group Medicare Advantage: 510.3 thousand compared to the 508.62 thousand average estimate based on four analysts.
Revenues- Premiums: $25.10 billion versus $24.37 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +16.9% change.
Revenues- Investment income (loss): $308 million compared to the $257.28 million average estimate based on five analysts. The reported number represents a change of +79.1% year over year.
Revenues- Consolidated- Premiums- Medicare stand-alone PDP: $493 million versus $479.98 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -7.7% change.
Revenues- Consolidated- Premiums- Total Medicare: $21.83 billion versus $21.76 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +19.1% change.
Revenues- Consolidated- Premiums- Specialty benefits: $252 million versus the four-analyst average estimate of $256.64 million. The reported number represents a year-over-year change of -40.7%.
Revenue- CenterWell: $4.66 billion versus $4.60 billion estimated by four analysts on average.
Insurance segment- Services revenue- Military and other: $202 million compared to the $174.78 million average estimate based on four analysts.
Insurance segment - Intersegment revenues- Services: $1 million versus the four-analyst average estimate of $12.75 million.
Shares of Humana have returned +7.2% over the past month versus the Zacks S&P 500 composite's -2.2% 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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Humana (HUM) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended September 2023, Humana (HUM - Free Report) reported revenue of $25.53 billion, up 12% over the same period last year. EPS came in at $7.78, compared to $6.88 in the year-ago quarter.
The reported revenue represents a surprise of +0.63% over the Zacks Consensus Estimate of $25.37 billion. With the consensus EPS estimate being $7.15, the EPS surprise was +8.81%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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: 86.6% compared to the 86.7% average estimate based on six analysts.
- Medical Membership - Medicare stand-alone PDP: 2,885.8 thousand versus the four-analyst average estimate of 2,881.75 thousand.
- Medical Membership - State-based contracts and other: 1,264.6 thousand versus the four-analyst average estimate of 1,256.3 thousand.
- Medical Membership - Group Medicare Advantage: 510.3 thousand compared to the 508.62 thousand average estimate based on four analysts.
- Revenues- Premiums: $25.10 billion versus $24.37 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +16.9% change.
- Revenues- Investment income (loss): $308 million compared to the $257.28 million average estimate based on five analysts. The reported number represents a change of +79.1% year over year.
- Revenues- Consolidated- Premiums- Medicare stand-alone PDP: $493 million versus $479.98 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -7.7% change.
- Revenues- Consolidated- Premiums- Total Medicare: $21.83 billion versus $21.76 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +19.1% change.
- Revenues- Consolidated- Premiums- Specialty benefits: $252 million versus the four-analyst average estimate of $256.64 million. The reported number represents a year-over-year change of -40.7%.
- Revenue- CenterWell: $4.66 billion versus $4.60 billion estimated by four analysts on average.
- Insurance segment- Services revenue- Military and other: $202 million compared to the $174.78 million average estimate based on four analysts.
- Insurance segment - Intersegment revenues- Services: $1 million versus the four-analyst average estimate of $12.75 million.
View all Key Company Metrics for Humana here>>>Shares of Humana have returned +7.2% over the past month versus the Zacks S&P 500 composite's -2.2% 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.