Humana(HUM)2025-04-30 10:05Financial Performance - 1Q25 earnings per share (EPS) reported at $10.30 (GAAP) and $11.58 (Adjusted) compared to $6.11 and $7.23 in 1Q24, representing a year-over-year increase of 68% and 60% respectively[3] - Consolidated revenues for 1Q25 reached $32,112 million, up from $29,611 million in 1Q24, reflecting a year-over-year growth of 8.5%[8] - Humana's consolidated revenues for Q1 2025 reached $32,112 million, up from $29,611 million in Q1 2024, reflecting an increase of 8.4%[40] - Humana Inc. reported a net income of $1,242 million for Q1 2025, up from $739 million in Q1 2024, representing a 68% increase[64] - Total revenues for Q1 2025 reached $32,112 million, compared to $29,611 million in Q1 2024, marking an increase of 8.5%[65][66] Insurance Segment Performance - The Insurance segment reported revenues of $30,937 million in 1Q25, an increase from $28,699 million in 1Q24, marking a growth of 7.7%[20] - The Insurance segment reported revenues of $30,937 million in Q1 2025, compared to $28,699 million in Q1 2024, marking a growth of 7.7%[40] - The Insurance segment's benefit ratio improved to 87.4% in Q1 2025 from 89.3% in Q1 2024, indicating better cost management[41] - Income from operations for the Insurance segment increased significantly to $1,574 million in Q1 2025, up from $898 million in Q1 2024, representing a growth of 75.2%[45] - The benefit ratio improved to 87.0% in Q1 2025 from 89.3% in Q1 2024, indicating better cost management in claims[65][66] Membership and Enrollment - Individual Medicare Advantage annual membership is expected to decline by approximately 550,000 due to exiting unprofitable plans and counties[3] - The total Medicare Advantage membership decreased to 5,788.4 thousand as of March 31, 2025, down 5.1% from 6,100.4 thousand a year earlier[67] - Humana expects to see growth of approximately 200,000 in Medicare stand-alone PDP membership[56] Operational Efficiency - The benefit ratio for the Insurance segment improved to 87.4% in 1Q25 from 89.3% in 1Q24, indicating enhanced operational efficiency[20] - Days in claims payable (DCP) decreased to 38.8 days in 1Q25 from 42.5 days in 1Q24, indicating improved claims processing efficiency[15] - Humana's operating cost ratio for Q1 2025 was 10.6%, slightly higher than 10.4% in Q1 2024, with adjusted (non-GAAP) figures showing 10.5% versus 10.2%[42] - Operating expenses for Q1 2025 were $30,098 million, an increase from $28,375 million in Q1 2024, reflecting a rise of 6.1%[66] Cash Flow and Capitalization - Operating cash flows decreased to $331 million in 1Q25 from $423 million in 1Q24, primarily due to unfavorable working capital items[17] - Humana's cash and cash equivalents at the end of Q1 2025 were $4,250 million, down from $5,910 million at the end of Q1 2024[64] - The company reported a significant increase in proceeds from the issuance of senior notes, totaling $1,481 million in Q1 2025 compared to $2,232 million in Q1 2024[64] - Debt-to-total capitalization improved to 42.8% in 1Q25 from 45.1% in 1Q24, reflecting a stronger balance sheet[8] Future Projections - Humana affirms its Adjusted FY 2025 EPS guidance at approximately $16.25 while revising GAAP EPS guidance to approximately $14.68 from $15.88[6] - Total revenues for 2025 are expected to be between $126 billion and $128 billion, with the insurance segment contributing $121 billion to $123 billion[56] - The CenterWell segment is projected to generate revenues between $20.5 billion and $21.5 billion[56] - The benefit ratio for the insurance segment is projected to be between 90.1% and 90.5%[56] - Operating cost ratio for consolidated operations is expected to be between 11.3% and 11.7%[56] - Cash flows from operations are projected to be between $2.4 billion and $2.9 billion[56] Segment Growth - The CenterWell segment revenues increased to $5,095 million in 1Q25 from $4,818 million in 1Q24, driven by growth in the primary care business[27] - The CenterWell segment's income from operations rose to $392 million in Q1 2025, compared to $282 million in Q1 2024, reflecting a growth of 39.1%[47] - The number of primary care patients served grew to 417,800 as of March 31, 2025, up from 318,000 a year earlier, indicating a year-over-year growth of 31.4%[72] - The total number of de novo primary care centers increased to 136 in Q1 2025, compared to 113 in Q1 2024, marking a growth of 20.4%[72] - The company aims to expand its market presence through new primary care centers and enhanced pharmacy solutions, focusing on improving patient engagement and care quality[77]