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Humana raises adjusted earnings forecast due to lower-than-expected medical costs

Humana raises adjusted earnings forecast due to lower-than-expected medical costs

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”.

โ€œImportantly, the company no longer sees it necessary to keep COVID-19 resistance separate in its complete annual guide,โ€ 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.

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