From Financial Modeling Prep: 2025-02-11 08:09:56

Humana Inc. reported a fourth-quarter loss of $693 million but beat EPS estimates with -$2.16 compared to the expected -$2.26. Revenue reached $29.21 billion, exceeding forecasts, but annual profit for 2025 is expected to be lower due to high costs. Shares fell by 5% in premarket trading, reflecting investor concerns over future profitability.

Humana faces competition in the Medicare Advantage market from UnitedHealth Group and Aetna. The company manages services for individuals aged 65 and older or with disabilities, receiving a fixed rate from the government. Despite a fourth-quarter loss, Humana strategically exits unprofitable markets to improve future performance.

Earnings for 2024 showed an EPS of -$2.16, better than the expected -$2.26. Despite a $693 million fourth-quarter loss, revenue of $29.21 billion surpassed forecasts. However, the company anticipates a lower annual profit for 2025 due to high costs associated with government-backed plans, leading to a 5% drop in shares during premarket trading.

Humana expects an adjusted profit per share of $16.25 for 2025, below analysts’ expectations of $16.71 per share. Financial results were impacted by factors like amortization of intangibles and exiting the employer group commercial medical products business, contributing to a pretax loss of $862 million in Q4 2024.

With an enterprise value to sales ratio of 0.35 and an earnings yield of 4.23%, Humana maintains a debt-to-equity ratio of 0.74, indicating moderate debt levels. The current ratio of 1.76 shows the company’s ability to cover short-term liabilities with short-term assets.



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