Humana raises annual profit forecast on lower medical costs
2022.07.27 15:54
FILE PHOTO: Signage for Humana Inc. is pictured at a health facility in Queens, New York City, U.S., November 30, 2021. REUTERS/Andrew Kelly
(Reuters) -Humana Inc raised its annual profit forecast for the second straight quarter on Wednesday, as lower-than-expected demand for non-urgent medical procedures helped keep medical expenses in check.
Health insurers have seen medical costs fluctuate through the pandemic, with lower spending on elective medical procedures softening the blow from higher claims related to COVID-19 testing and treatment.
Rivals UnitedHealth Group (NYSE:UNH) and Elevance Health, formerly known as Anthem Inc, both raised their annual profit forecast earlier this month, citing a slow pace of normalization in demand for these medical procedures and lower COVID costs.
Humana (NYSE:HUM) also reported better-than-expected second-quarter results, partly driven by higher members in its insurance business that offers both government-backed and commercial health plans.
The company raised its full-year adjusted earnings forecast to about $24.75 per share, compared with its prior projection of $24.50.
Humana said lower medical services utilization trends and lack of COVID-19 headwind were partly responsible for the forecast raise. The company, however, continues to see some impact from COVID in the rest of the year.
On an adjusted basis, the company earned $8.67 per share, beating the average estimate of $7.67 per share, according to Refinitiv IBES data.
Total revenue was $23.72 billion, above the estimate of $23.47 billion.
