Humana Maintains 2025 EPS Target Amid Medicare Membership Decline

Published 10 hours agoHUM

Humana Maintains 2025 EPS Target Amid Medicare Membership Decline

Humana Inc. has reiterated its financial outlook for 2025, holding firm on its adjusted earnings per share (EPS) target of around $16.25. This confirmation aligns with Humana's previously stated guidance. In addition to the adjusted EPS, the company also projects a GAAP EPS of approximately $15.88 for the fiscal year ending December 31, 2025. Despite these targets, Reuters reported that the insurer anticipates reduced membership in its individual Medicare Advantage plans by roughly 550,000 members, a decrease of about 10% from the previous year. This decline is attributed to Humana's decision to exit unprofitable plans and exit certain counties.

In its recent performance, Humana reported a challenging fourth quarter for the fiscal year 2024, marking a net loss per share of $5.76 on a GAAP basis and an adjusted net loss of $2.16. For the entire year of 2024, their GAAP EPS stood at $9.98 and adjusted EPS at $16.21. This data shows the company's ongoing struggle and underscores the significance of the upcoming fiscal year.

Looking ahead, Humana is driving forward with strategic initiatives aimed at bolstering their Medicaid and CenterWell strategies to enhance earnings over time. CEO Jim Rechtin has shown confidence in these plans, stating that 2025 represents a pivotal year for the company to return to more robust, normalized profit margins.

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