Humana's Mixed Q3 Results Amid Rising Costs

3 months ago

Nathan Hager

"Now this morning we got earnings from Humanana and it's not looking like that's giving much help to sentiment either. This company reported adjusted third quarter earnings of $3.24. That's above the Wall Street estimates. The beat was aided by stronger than expected revenue from Medicare members. Medicaid trailed estimates. Rising health care costs are weighing on the company's profit. 91% of the revenue from premiums went back into medical care, a higher proportion than the previous report. While the 12% gains this year are nowhere near those of the AI names we discussed earlier, it's a relatively high flyer in the health insurance space."

Humana beat earnings estimates largely due to Medicare performance, but the escalating healthcare costs and high payout ratio are putting pressure on profits.

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