Humana Inc., a health insurance company based out of U.S., has seen its stock price rally 15% over the last month. The rally was primarily driven by stronger-than-expected Q3 results. The company’s adjusted EPS stood at $5.03 per diluted share, versus the consensus estimate of $4.58. The company has steadily raised its full-year EPS guidance as the year progressed, with the figure going up from $16.63 in Q1 to 17.97 in Q2 to $18.32 in Q3. The current guidance represents an overall earnings growth of 22% in 2019 compared to 2018.
We step back from these recent swings to review HumanaâsÂ performance over the last few years, as a context for what might come next. Our Interactive dashboard- Why has Humanaâs stock been up by 15% this month?Â – reviews the near-term reasons and the big picture.
The context for the last few years:
A closer look At HumanaâsÂ Total Revenues over the last few years and the outlook
Total Revenues for Humana moderately increased from $53.8 Bil in 2017 to $56.9 Bil in 2018, an increase of 5.8%.
This compares with Total Revenues growth of:
- 11.9% in 2015
- 0.2% in 2016
- -1.1% in 2017
We expect Total Revenues growth to be 13.8% in 2019.Â (the revenue growth is on account of growth in Medicare Advantage plans)
A closer look At HumanaâsÂ Total ExpensesÂ over the last few years and the outlook
Total Expense for Humana increased from $49.7 Bil in 2017 to $54.8 Bil in 2018, an increase of 10.3%.
This compares with Total Expense growth of:
- 11.9% in 2015
- 1.9% in 2016
- -5.8% in 2017
We expect Total Expense growth to be 12.6% in 2019.
How doesÂ HumanaâsÂ Revenue Growth compare with rivals?
For more information on how HumanaâsÂ revenue growth compares with Anthem, Cigna and Centene, view our interactive dashboard analysis.
How has Â HumanaâsÂ EBT trended?
EBT for Humana decreased substantially by 48.7% from $4.02 Bil in 2017 to $2.06 Bil in 2018.Â (Due to higher base of 2017 on account of one time merger termination fee)
We expect EBT to increase 45.4% to $2.99 Bil in 2019.
How has HumanaâsÂ Net Income and EPS trended?
For more details aboutÂ Humanaâs Net Income and EPS, view our interactive dashboard analysis
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