Humana(US:HUM) Benzinga·2025-11-05 15:46Core Insights - Humana Inc. reported adjusted earnings of $3.24 for Q3, surpassing the consensus estimate of $2.82 [1] - The company achieved sales of $32.65 billion, an increase from $29.39 billion year-over-year, exceeding the consensus of $32.01 billion [2] Financial Performance - Sales growth was attributed to higher per-member Medicare and state-based contract premiums, with the Medicare increase driven by a direct subsidy from the Inflation Reduction Act and membership growth in state-based contracts and stand-alone PDP businesses [2] - The insurance segment benefit ratio was reported at 91.1%, aligning with previous expectations of just above 91% [4] Membership Trends - Total medical membership decreased to 14.99 million from 16.36 million a year ago [3] - Individual Medicare Advantage membership fell to 5.24 million from 5.66 million year-over-year [3] - Total Medicare members decreased to 8.25 million from 8.52 million the previous year [3] Guidance and Future Outlook - Humana reaffirmed its 2025 adjusted earnings guidance of $17.00 per share, slightly below the consensus of $17.07 [5] - The company reiterated its Insurance segment benefit ratio guidance of 90.1% to 90.5%, supported by solid execution [5] - Revenue is projected to be at least $128 billion in 2025, in line with the consensus estimate of $128.09 billion [6] - A decline of approximately 425,000 Individual Medicare Advantage members is anticipated for fiscal 2025, an improvement from the previous expectation of a loss of up to 500,000 [7] Investment and Impact - Humana plans to invest an additional approximately $150 million, which is additive to the previously discussed incremental investments [6] - The fourth-quarter Insurance segment benefit ratio is expected to be around 93.5%, with the fiscal 2025 ratio anticipated to be at the top end of the guidance range [8] - Humana shares were down 6.56% at $263.37 at the time of publication [8]