Written by Sam Bogda
Humana you (NYSE :), a health insurer, increased its full-year adjusted earnings forecast by $0.25 per share, driven by persistently lower-than-expected medical costs.
The news resulted in a surge in Humana’s shares. They are currently trading 7.9% higher at the time of writing.
Humana’s fiscal year 2022 EPS guidance has been increased to $23.08 from $20.30, while adjusted EPS has been increased to $25 from $24.75. The company said it was also driven by the “no Covid-19 headwinds coming true so far”.
“Importantly, the company no longer sees it necessary to keep COVID-19 resistance separate in its complete annual guide,” Humana stated.
The company already raised its July profit forecast by $0.25
Humana also revealed that it expects to post adjusted earnings of $37 in 2025 and continue earnings growth in 2026 and beyond.