• American health insurance Humana Inc BUZZ resulted in an adjusted EPS target for the 2025 financial year of $37, representing a 14% compound annual growth rate over the company’s updated adjusted EPS guidance for fiscal 2022.
  • The company expects to grow corporate earnings by about 10% per year before factoring in an additional 1% to 2% of expected earnings growth, driven by the company’s commitment to increasing operating leverage by about 20 basis points annually on an adjusted 2019 basis improve business mix.
  • In addition, Humana expects capital expenditures to contribute approximately 2% to annual EPS growth.
  • Humana also raised its FY22 GAAP and adjusted EPS guidance to about $23.08 from its previous estimate of about $20.30 and adjusted earnings per share to about $25 expected about $24.75 earlier.
  • The updated adjusted guidance reflects growth of 21% compared to adjusted fiscal 2021 EPS results, reflecting continued lower-than-expected medical expense developments in the Company’s Medicare Advantage and Medicaid businesses and the absence of COVID-19 -Headwind is due.
  • The company no longer feels it necessary to keep a discreet COVID-19 headwind in its annual guide.
  • Humana will release its Q3 FY22 results on November 2nd.
  • Price promotion: HUM shares are up 6.98% on the last check Thursday to $490.90.


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