Humana Inc. (NYSE:HUM) stock rose on Wednesday after the health insurer released its first-quarter earnings.
Earnings Beat Expectations Despite Year-Over-Year Profit Decline
The company reported first-quarter adjusted income of $10.31 per share, down from $11.58 last year and above the consensus estimate of $10.19.
The company reported sales of $39.65 billion, up from $32.11 billion a year ago, beating the consensus of $39.36 billion.
Humana ended the quarter with 17.71 million in total medical membership, up from 14.84 million a year ago.
Individual Medicare Advantage membership reached 6.39 million, up from 5.22 million a year ago.
The total number of Medicare members was 10.98 million, up from 8.22 million the previous year.
Cost Ratios Improve
The insurance segment benefit ratio came in at 89.4%, slightly better than the company’s guidance of just under 90%.
The adjusted operating cost ratio of 10.0% and the Insurance Segment operating cost ratio of 7.3% represent 50 basis points (bps) and 90 bps reductions year over year, respectively.