Humana Inc. (HUM) reported second quarter adjusted earnings per share of $12.56 compared to $6.05, previous year. On average, 22 analysts polled by Thomson Reuters expected the company to report profit per share of $10.27, for the quarter. Analysts’ estimates typically exclude special items.
Second quarter revenues increased year-on-year to $19.08 billion from $16.25 billion. Analysts expected revenue of $18.63 billion for the quarter. Humana said its second quarter results of operations were materially impacted by the significant, temporary deferral of care resulting from stay-at-home orders, physical distancing measures, and other restrictions on movement and economic activity implemented throughout the country to reduce the spread of COVID-19.
The company expects its second quarter results will be offset in the latter half of 2020 as demand for previously deferred care normalizes, combined with the financial impact of the company’s ongoing relief efforts to ease the burden of the pandemic for its constituents, which is heavily weighted to the second half of 2020.
For fiscal 2020, Humana maintained its adjusted earnings per share guidance range of $18.25 to $18.75. Analysts expect the company to report profit per share of $18.72, for fiscal year.
For fiscal 2020, the company revised its net membership growth estimate for its
individual Medicare Advantage products, now expecting growth in a range of 330,000 to 360,000 members compared to the previous guidance growth range of 300,000 to 350,000 members. This represents year-over-year growth of approximately 10 percent at the midpoint of the guidance range.
For fiscal 2020, the company reiterated its expectations for group Medicare Advantage net membership gains, projecting an increase of approximately 90,000 members year over year.
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