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Humana beats profit estimates on lower-than-expected costs, delayed expenses
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Humana beats profit estimates on lower-than-expected costs, delayed expenses
May 25, 2025 9:47 PM

April 30 (Reuters) - Humana beat Wall Street

estimates for first-quarter profit on Wednesday by a large

margin, helped by lower costs and delayed administrative

expenses and incremental investments, sending shares of the

health insurer up 6% in premarket trading.

On an adjusted basis, the company earned a profit of $11.58

per share, above analysts' average estimate of $10.1, according

to data compiled by LSEG.

The company also reaffirmed its 2025 adjusted profit

forecast of about $16.25 per share.

The results were in stark contrast to industry bellwether

UnitedHealth ( UNH ). Earlier this month, UnitedHealth ( UNH ) missed

quarterly estimates for the first time since 2008, in part due

to high spending related to its Medicare Advantage plans,

sparking a brief selloff in the sector.

Humana is a top provider of U.S. government's Medicare

Advantage plans, meant for people aged 65 and older, and those

with disabilities.

Investors will be keenly watching for details on the

company's medical spending.

The insurer's medical cost ratio - the percentage of

premiums spent on medical care - came in at 87.4% for the

quarter, in line with its prior estimate. Analysts on average

had expected a medical cost ratio of 87.5%.

(Reporting by Sneha S K in Bengaluru; Editing by Shinjini

Ganguli)

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