Humana Earnings On Deck: Investors Brace For Slower Growth Clip

Health insurance company Humana (NYSE:HUM) is set to release its fourth-quarter 2024 earnings report on Feb. 11, before market hours. The stock has dropped 2.37% from the previous close, as of writing, on Feb.10, according to Benzinga Pro.

The stock is up 5.58% year-to-date but has fallen 27.73% in the past year.

In the previous quarter, Humana reported revenues of $29.4 billion — a 15.2% year-over-year increase. It surpassed analysts’ expectations by 2.6%.

The company also achieved a solid beat on earnings per share (EPS) estimates, though it slightly missed full-year EPS guidance estimates.

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What To Watch: For the upcoming report, analysts anticipate a 12% year-over-year revenue growth to $28.83 billion. This indicates a deceleration from the 14.7% growth observed in the same quarter last year. An adjusted loss of $2.12 per share is expected.

It’s noteworthy that some of Humana’s peers in the health insurance sector have already reported their Q4 results. Centene (NYSE:CNC) delivered a 3.4% year-over-year revenue growth, beating analysts’ expectations by 4.4%, while Cencora (NYSE:COR) reported a 12.8% increase, topping estimates by 5.2%.

Investors will be keen to see if Humana can maintain its growth trajectory and how its performance compares to industry peers. Additionally, any updates on operating cost ratios will be closely monitored, especially after the company projected a 30 basis point decrease in its adjusted operating cost ratio for the year during the Q3 earnings call.

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