Humana (HUM) plunges 17% on extremely disappointing profit forecast for 2024
Humana (NYSE: HUM) shares sharply declined in early Thursday trade after the company introduced profit guidance for 2024 that was way below analyst expectations.
The company said it is anticipating an adjusted EPS of “approximately $16.00,” which compares to the consensus estimate of $26.09.
The new outlook “assumes the higher Medicare Advantage medical costs experienced in 4Q23 persist throughout 2024,” Humana said.
As of 06:42 EDT (11:42 GMT), shares were down 16.7%.
As far as its fourth-quarter earnings are concerned, the company reported a loss per share of 11 cents, while the analyst estimate stood at $2.15.
The company generated revenue of $26.46 billion for the quarter, surpassing the consensus estimate of $25.6 billion.
Elsewhere, the consolidated benefit ratio stood at 90.7%, slightly higher than the estimated 89.6%. Operating cost ratio was 14.6%, also exceeding the estimated 13.1%.
By Senad Karaahmetovic