HUMANA INC Reports Q4 Earnings Results for FY2022 Ending February 1, 2023
April 2, 2023
Earnings Overview
HUMANA INC ($NYSE:HUM) reported total revenue of -$15.0 million for the fourth quarter of fiscal year 2022, ending February 1, 2023, a decrease of 7.1% from the same period the previous year.
Transcripts Simplified
In the fourth quarter of 2022, Humana Inc reported an adjusted EPS of $1.62 which was above internal expectations and consensus estimates. The Insurance segment experienced medical cost that was slightly above previous expectations due to higher flu and COVID costs and 340B eligible drugs, however, these were discrete items in the quarter and do not have a carryover impact into 2023. The CenterWell segment performed largely in line with expectations, while the home health business saw total admissions up 9.1% year-over-year for the fourth quarter and 6.3% for the full year. Humana’s pharmacy results also remain strong, with industry-leading mail order penetration of 38.6% for their individual Medicare Advantage members.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Humana Inc. More…
| Total Revenues | Net Income | Net Margin |
| 92.87k | 2.81k | 2.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Humana Inc. More…
| Operations | Investing | Financing |
| 4.59k | -1.01k | -1.91k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Humana Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 43.05k | 27.68k | 128.39 |
Key Ratios Snapshot
Some of the financial key ratios for Humana Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.7% | – | 4.3% |
| FCF Margin | ROE | ROA |
| 3.7% | 15.7% | 5.8% |
Price History
On Wednesday, HUMANA INC, a leading health care company, reported its fourth-quarter and full-year earnings results for the fiscal year ending February 1, 2023. HUMANA INC’s stock opened at $506.1 and closed at $513.3, up by 0.3% from the previous closing price of $511.7. Overall, HUMANA INC reported strong financial results for FY2022, surpassing expectations and demonstrating its financial strength and resilience in a challenging environment. Live Quote…
Analysis
We recently conducted an analysis of HUMANA INC‘s wellbeing. Our Star Chart revealed that HUMANA INC ranked strong in dividend, and medium in asset, growth and profitability. Based on this information, we concluded that HUMANA INC is classified as a ‘cheetah’, meaning it achieved high revenue or earnings growth but with lower stability due to lower profitability. This classification of HUMANA INC makes it appealing to investors with a higher risk appetite, as long as they are aware of the trade-offs. HUMANA INC’s health score of 8/10 is quite high, considering its cashflows and debt. This means that the company is capable of paying off its debt and funding future operations. More…
Peers
In the ever-changing world of healthcare, Humana Inc. has been a leader in providing quality services to its customers. However, the company faces stiff competition from the likes of UnitedHealth Group Inc, Cigna Corp, and Oscar Health Inc. All of these companies are striving to provide the best possible healthcare experience to their customers.
– UnitedHealth Group Inc ($NYSE:UNH)
UnitedHealth Group Inc. is an American for-profit managed health care company based in Minnetonka, Minnesota. It is the largest healthcare company in the world by revenue, with 2019 revenue of $242.2 billion. The company offers health care products and services through two operating businesses: UnitedHealthcare and Optum.
UnitedHealthcare provides health benefits and services to individuals, families, and businesses through a wide array of plans and programs, including health insurance, pharmacy benefits, vision, dental, and other supplemental health and wellness benefits. Optum is a health services and innovation company that provides technology-enabled health services and software. It offers healthcare information technology, data analytics, and research and consulting services to the healthcare industry.
The company has a market capitalization of $488.16 billion as of April 2021 and a return on equity of 21.75%.
– Cigna Corp ($NYSE:CI)
Cigna Corp is a health services company with a market cap of 88.46 billion as of 2022. The company has a return on equity of 11.01%. Cigna Corp provides medical, dental, disability, life, and other health insurance products and services. The company also offers pharmacy benefit management services.
– Oscar Health Inc ($NYSE:OSCR)
Oscar Health is a technology-driven health insurance company founded in 2012. The company’s mission is to make health insurance simple, transparent, and human.
Oscar uses technology to simplify the health insurance experience for consumers and providers. The company has a suite of tools that helps consumers understand their benefits, find doctors, and estimate the cost of care. For providers, Oscar offers a platform that streamlines claims processing and provides real-time insights into patients’ health insurance benefits.
Oscar Health is headquartered in New York City and is available in nine states: California, Colorado, Florida, Georgia, Illinois, Michigan, New Jersey, New York, and Texas.
Summary
Humana Inc. posted a strong fourth quarter earnings report for the fiscal year ending February 1, 2023. Total revenue decreased by 7.1%, however net income rose 6.6% year-over-year. This shows that Humana is still growing despite the pandemic and is a good investment opportunity. Analysts believe that Humana will continue to grow due to its strong customer base, innovative products and strategies, and successful acquisitions.
Furthermore, the company has a solid balance sheet, ample liquidity, and low debt levels. With continued cash flow generation and strong financial position, Humana is an attractive investment for investors seeking long-term growth opportunities.
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