01—Abstract
Summary
Summary of the 8-K filed March 5, 2024. Cited figures are marked; the original filing is the authoritative source.
Humana Inc. filed this Form 8-K on March 5, 2024 under Item 7.01 (Regulation FD Disclosure) to say that members of its senior management team will meet with investors and analysts at an industry conference and other meetings between March 5, 2024 and March 31, 2024.
During these meetings, the Company intends to reaffirm its guidance for the year ending December 31, 2024 (FY 2024) of approximately $14.87a in diluted earnings per common share and approximately $16.00 in adjusted earnings per common share. The filing states this guidance is consistent with the guidance issued in Humana's press release dated January 25, 2024. The filing includes a reconciliation of GAAP to adjusted EPS for FY 2024.
The adjustments are amortization of identifiable intangibles of $0.49b per share, the impact of the exit of the employer group commercial medical products business of $0.97 per share, and a cumulative net tax impact of non-GAAP adjustments of $(0.33) per share. Management states that adjusted EPS is used to evaluate core operating performance, for planning and decision-making, and in determining incentive compensation, and that it should be considered in addition to, not as a substitute for, GAAP EPS. For investors, the key takeaway is that the filing reaffirms rather than changes Humana's FY 2024 earnings outlook, and it discloses the non-GAAP items that bridge the two EPS measures.
02—Key points
Key Highlights
- Humana intends to reaffirm FY 2024 guidance of approximately $14.87 diluted GAAP EPS and approximately $16.00 adjusted EPS during investor meetings from March 5 to March 31, 2024.
- The reaffirmed guidance is stated to be consistent with the guidance in Humana's January 25, 2024 press release.
- Adjusted EPS adds back $0.49 per share of amortization of identifiable intangibles.
- Adjusted EPS adds back $0.97 per share for the impact of the exit of the employer group commercial medical products business.
- A cumulative net tax impact of non-GAAP adjustments of $(0.33) per share is deducted in the reconciliation.
- The filing is a Regulation FD disclosure, so the guidance reaffirmation is made publicly through the 8-K ahead of or during the investor meetings.
- Investor presentation dates are posted on the Investor Relations calendar at www.humana.com.
03—Questions
Frequently Asked Questions
What is Humana's FY 2024 earnings guidance?
Humana intends to reaffirm guidance of approximately $14.87 in diluted GAAP earnings per common share and approximately $16.00 in adjusted earnings per common share for the year ending December 31, 2024.
Is this guidance a change from earlier guidance?
No. The filing states the reaffirmed guidance is consistent with the guidance issued in Humana's press release dated January 25, 2024.
What adjustments separate GAAP EPS from adjusted EPS?
The reconciliation adds back $0.49 per share for amortization of identifiable intangibles and $0.97 per share for the impact of the exit of the employer group commercial medical products business, and deducts $(0.33) per share for the cumulative net tax impact of non-GAAP adjustments.
Why does management use adjusted EPS?
Management states that, alongside GAAP EPS, adjusted EPS gives a comprehensive view to compare core operating performance over time. It is also used for planning, decision-making, and determining incentive compensation, and it is not a substitute for GAAP EPS.
When and where will management meet with investors?
Senior management will meet with investors and analysts at an industry conference and various other meetings between March 5, 2024 and March 31, 2024. Dates and times are available on the Investor Relations calendar at www.humana.com.
04—Continue