Humana Inc (NYSE:HUM) stock rose 0.80% (As on November 3, 11:42:27 AM UTC-4, Source: Google Finance) after the company surpasses earnings estimates for the third quarter of FY 22. The company achieves 96 percent of the company’s Medicare Advantage members currently enrolled in 4-star and above contracts, and 66 percent of members in 4.5 and 5-star contracts for 2023, an industry-leader among its publicly traded peers. Humana is well positioned for the 2023 Medicare Advantage Annual Election Period, with plans designed to meet customers’ affordability and healthcare needs, especially important given the current economic conditions and knowing many seniors are on fixed incomes. In fact, 72 percent of Humana plans have $0 primary care copays and 94 percent include dental benefits, with many having expanded coverage for essentials like groceries, rent and utilities. The company has also expanded the footprint of the $0 premium LPPO product now offered in over 2,400 counties, a 34% increase year-over-year to better serve members looking for low-cost options with network flexibility.

Moreover, the company is prepared for the Ohio contract to go live on December 1, adding approximately 60,000 members at implementation, which is included in the guidance. Group and Specialty segment results were in line with expectations for the quarter with the specialty business continuing to benefit from lower-than-expected dental utilization. HUM continues to anticipate a reduction of approximately 200,000 employer group medical members in 2022 driven by the disciplined pricing and focus on margin stability.

HUM in the third quarter of FY 22 has reported the adjusted earnings per share of $6.88, beating the analysts’ estimates for the adjusted earnings per share of $6.25, according to Zacks Investment Research. The company had reported the adjusted revenue of $22.8 billion in the third quarter of FY 22, which is inline with the analysts’ estimates for revenue of $22.8 billion. From a capital deployment perspective, the debt-to-capitalization ratio decreased by 590 basis points in the third quarter to 39.4% as the company has retired $2 billion of debt following the divestiture of our majority interest in Kindred Hospice, which closed in August.

Humana affirmed its FY 2022 Adjusted EPS guidance that was previously revised upward as part of the company’s Investor Day in September 2022. The current FY 2022 Adjusted EPS guidance of ‘approximately $25.00’ reflects 21 percent growth compared to FY 2021 Adjusted EPS results. The company Anticipates 2023 individual Medicare Advantage membership growth of 325,000 to 400,000, or 7.1 percent to 8.7 percent growth, over projected FY 2022 ending membership; in line with anticipated high single-digit industry growth.