Humana Q1 Earnings Beats Expectations, Raises FY22 Profit Guidance

• Humana Inc (NYSE:HUM) has posted Q1 adjusted sales of $24.08 billion, beating the consensus of $23.51 billion.
• The benefits expense ratio increased from 86.4% to 85.9%, and the operating cost ratio increased from 12% to 9.7%. 
• Humana posted an adjusted EPS of $8.04, beating the consensus of $6.78 and $6.38 posted a year ago.
• Related: Humana to Offload Substantial Stake In Kindred At Home Hospice & Personal Care Divisions.
• Guidance: Humana expects FY22 GAAP EPS of at least approximately $24.50, up from prior guidance of $24, versus the consensus of $24.17.
• The updated guidance includes a $1.00 embedded COVID headwind and the estimated dilutive impact related to the pending divestiture of Humana's 60% stake in Kindred at Home's Hospice and Personal Care divisions.
• The Company reaffirms FY 2022 expected individual Medicare Advantage membership growth range of approximately 150,000 to 200,000.
• Price Action: HUM shares are up 3.18% at $444.17 during the market session on the last check Wednesday.