01—Abstract
Summary
Summary of the 8-K filed June 3, 2024. Cited figures are marked; the original filing is the authoritative source.
Humana Inc. filed this Form 8-K under Item 7.01 (Regulation FD Disclosure) to say that members of its senior management team are scheduled to meet with investors and analysts between June 3, 2024 and June 28, 2024.
During these meetings, the Company intends to reaffirm its guidance for the year ending December 31, 2024 (FY 2024): approximately $13.93a in diluted earnings per common share (EPS), or approximately $16.00 in adjusted earnings per common share (Adjusted EPS). The filing states this guidance is consistent with the guidance issued in Humana's press release dated April 24, 2024. The filing includes a reconciliation of GAAP diluted EPS to Adjusted EPS for FY 2024.
Adjustments from the GAAP figure of approximately $13.93b are: amortization of identifiable intangibles of $0.49; put/call valuation adjustments associated with the Company's non-consolidating minority interest investments of $1.08; impact of exit of employer group commercial medical products business of $0.90; value creation initiatives of $0.24; and a cumulative net tax impact of non-GAAP adjustments of $(0.64). Management states that Adjusted EPS is used as a consistent indicator of core business operations and for planning, decision-making and incentive compensation, and that it should be considered in addition to, not as a substitute for, GAAP EPS. For investors, the key message is a reaffirmation rather than a change: the filing signals that management plans to restate existing FY 2024 guidance in investor meetings in June 2024, with no new guidance figures disclosed.
02—Key points
Key Highlights
- Management plans investor and analyst meetings between June 3, 2024 and June 28, 2024, during which it intends to reaffirm FY 2024 guidance.
- FY 2024 guidance is approximately $13.93 diluted EPS (GAAP) and approximately $16.00 Adjusted EPS (non-GAAP).
- The guidance is stated to be consistent with the guidance issued in Humana's April 24, 2024 press release.
- The GAAP-to-Adjusted EPS reconciliation adds back $0.49 of amortization of identifiable intangibles, $1.08 of put/call valuation adjustments on non-consolidating minority interest investments, $0.90 from the exit of the employer group commercial medical products business, and $0.24 of value creation initiatives.
- A cumulative net tax impact of non-GAAP adjustments of $(0.64) is deducted in the reconciliation.
- The filing contains no new guidance; it is a Regulation FD disclosure reiterating existing expectations.
03—Questions
Frequently Asked Questions
Did Humana change its FY 2024 earnings guidance in this filing?
No. The filing states that management intends to reaffirm guidance of approximately $13.93 diluted EPS and approximately $16.00 Adjusted EPS for FY 2024, which it describes as consistent with the April 24, 2024 press release guidance.
When will Humana management reaffirm guidance?
Senior management is scheduled to meet with investors and analysts between June 3, 2024 and June 28, 2024, and the Company intends to reaffirm guidance during these meetings.
What is the difference between GAAP EPS and Adjusted EPS for Humana in FY 2024?
The filing reconciles approximately $13.93 GAAP diluted EPS to approximately $16.00 Adjusted EPS. The adjustments are $0.49 amortization of identifiable intangibles, $1.08 put/call valuation adjustments on non-consolidating minority interest investments, $0.90 impact of exiting the employer group commercial medical products business, $0.24 value creation initiatives, and a $(0.64) cumulative net tax impact.
Why does Humana use Adjusted EPS?
According to the filing, management believes Adjusted EPS, presented alongside GAAP EPS, gives a comprehensive view to compare core operating performance over time. It is also used for planning, decision-making and determining incentive compensation. The filing notes it is not a substitute for GAAP EPS.
04—Continue