WASHINGTON (dpa-AFX) - Shares of Humana, Inc. were gaining around 7 percent in the pre-market activity on the NYSE after the health insurer on Wednesday reported higher first-quarter profit above market estimates. Meanwhile, the firm trimmed its fiscal 2025 earnings view on a reported basis, and maintained adjusted earnings forecast below the Street.
Humana shares are currently trading at $258.48, down 0.34 percent.
Humana President and CEO Jim Rechtin said, 'We are confident in the growth outlook for value-based care and Medicare Advantage, which will allow us to provide more quality care to a broader group of patients and members.'
For the year, the company now expects earnings of approximately $14.68 per share, compared to previous estimate of approximately $15.88 per share.
Humana continues to project adjusted earnings of around $16.25 per share.
The Wall Street analysts on average expect the company to report earnings of $16.35 per share. Analysts' estimates typically exclude special items.
In fiscal 2024, reported earnings were $9.98 per share and adjusted earings were $16.21 per share.
Further, the company continues to expect individual Medicare Advantage annual membership decline of approximately 550,000, or approximately 10 percent, from 2024. The outlook includes the company's decision to exit certain unprofitable plans and counties.
Humana further said it remains confident in 2025 pricing strategy as the company prioritizes membership that is expected to drive sustainable, long-term value creation.
In the first quarter, Humana's earnings came in at $1.244 billion or $10.30 per share, compared with $741 million or $6.11 per share last year.
Adjusted earnings were $1.893 billion or $11.58 per share for the period, compared to $7.23 per share last year.
Analysts had expected the company to earn $10.07 per share.
The company's revenue for the period rose 8.4 percent to $32.112 billion from $29.611 billion last year. The Street expected revenues of $32.22 billion.
Insurance segment revenues grew to $30.94 billion from prior year's $28.70 billion.
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