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Humana Boosts Outlook on Lower-Than-Expected Medicare Advantage Membership Drop

1. Humana raised full-year EPS outlook to $17, up from $16.25. 2. Expected Medicare Advantage member decline reduced to 500,000 from 550,000. 3. CenterWell Primary Care centers see increased patient growth forecast. 4. Second-quarter adjusted EPS of $6.27 exceeded analyst expectations. 5. Humana shares jumped 5%, but year-to-date still slightly lower.

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FAQ

Why Bullish?

The upward revision in EPS and revenue forecasts suggests strong business performance. Historical precedence shows similar guidance increases often lead to positive stock reactions.

How important is it?

The revisions to financial guidance are critical indicators of Humana's operational health; thus, they heighten investor confidence.

Why Short Term?

Immediate positive financial results and guidance revisions impact short-term trading. Sustained performance will determine longer-term effects.

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