Humana (NYSE:HUM) saw its stock decline over 6% intra-day today after reporting weaker-than-expected fourth-quarter results and issuing a 2025 earnings outlook that fell short of analyst projections. Despite strong revenue growth, the health insurer faced mounting costs and operational investments that weighed on profitability.
For Q4 2024, Humana posted an adjusted net loss per share of $2.16, slightly missing expectations of a $2.13 loss. However, revenue came in stronger than anticipated at $29.21 billion, surpassing the $28.72 billion consensus estimate and marking an 8.3% year-over-year increase.
The company’s Insurance segment adjusted benefit ratio stood at 91.9%, aligning with expectations. This figure included a 20-basis point increase tied to additional investments in Star Ratings, a key performance metric for Medicare plans.
Looking ahead, Humana provided a cautious full-year 2025 outlook, projecting adjusted EPS of approximately $16.25, below analysts’ expectations of $16.91. The company attributed this guidance to incremental investments aimed at enhancing operational efficiency.
On a GAAP basis, Humana reported a Q4 net loss per share of $5.76, compared to a $4.42 loss in the same quarter last year. For the full year 2024, GAAP earnings per share were $9.98, while adjusted EPS totaled $16.21.