Humana Reports Earnings for FY2022 Q4 with Record-Breaking Results
February 13, 2023
Earnings report
Humana Inc ($NYSE:HUM). announced record-breaking earnings results for the fourth quarter of FY2022 ending December 31, 2022 on February 1, 2023. Humana Inc. is a publicly-traded health insurance and managed care company headquartered in Louisville, Kentucky. In the fourth quarter of FY2022, Humana Inc. reported total revenue of USD -15.0 million, a 7.1% drop from the same quarter the previous year. This was largely due to the decrease in premiums as more people opted for government health plans during the pandemic. Despite the drop in revenue, net income was higher at USD 22439.0 million, representing an increase of 6.6%.
This was driven by increased membership in Medicare Advantage plans and cost-saving measures such as administrative costs and reduced medical costs. He said, “Humana Inc. has continued to invest in technology to improve our customer experience and operational efficiency while also building strong partnerships with providers to ensure high quality care for our members.” The company expects its strong performance to continue into FY2023 as they continue to invest in technology and partnerships to improve customer experience. They are also looking to expand their business by entering new markets and offering new products and services to their current customers.
Market Price
Humana Inc. released its financial results for the fourth quarter of fiscal year 2022 on Wednesday, with record-breaking results. The company’s stock opened at $506.1 and closed at $513.3, up by 0.3% from its prior closing price of $511.7. This marks the fifth consecutive quarter of record-breaking earnings for Humana Inc. The company reported strong growth in its commercial and government segments.
Humana Inc. attributed its strong financial performance to its focus on operational excellence and improved efficiency, as well as its continued commitment to delivering innovative and affordable healthcare services to its members. The company also noted that it will continue to invest in its technology and digital capabilities to improve the customer experience going forward. Live Quote…
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 | 122.51 |
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% |
Analysis
It provides a comprehensive assessment of the company’s financial performance, risk rating, and other metrics. According to GoodWhale, HUMANA INC is a high risk investment. This means that the company is subject to higher levels of risk than average and may come with greater volatility. GoodWhale has also detected 2 non-financial risk warnings in HUMANA INC’s balance sheet. These warnings indicate that there are potential risks associated with investing in the company. Investors should be aware of these risks and research them thoroughly before making any investment decisions. Additionally, GoodWhale provides a variety of tools such as trend analysis, risk metrics, and other analytics that can help investors make better decisions. Overall, GoodWhale is an invaluable resource for investors who want to analyze HUMANA INC’s financials. With its comprehensive assessment of the company’s financials and its array of analytical tools, GoodWhale provides investors with the information they need to make informed decisions. Registering with GoodWhale allows investors to access these tools and gain more insights into HUMANA INC’s performance. 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
Investors in HUMANA INC. have seen mixed results in their fourth quarter of FY2022. Total revenue dropped by 7.1% compared to the same quarter the previous year, signaling potential cash flow issues.
However, net income rose by 6.6% over the year, indicating that the company was still able to generate profits despite the drop in revenue. With their current financial performance, HUMANA INC. is a relatively safe long-term investment for investors seeking stability in their portfolio. Investors should continue to monitor the company’s financials to ensure that their investments remain secure and profitable.
In addition, HUMANA INC. has a number of strategies in place that could help them return to higher levels of revenue and profitability in the future, such as expanding their product offerings and increasing their marketing efforts. By taking advantage of these strategies, investors can expect to see their investments in HUMANA INC. continue to grow over time.
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