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J.P. Morgan Reiterates Neutral Rating on Humana

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In a report published Monday, J.P. Morgan reiterated its Neutral rating on Humana (NYSE: HUM).

J.P. Morgan noted, “Q4 adjusted EPS of $1.19 beats JPMe/consensus $1.05/$1.07 and guidance of $0.98-$1.08 primarily on lower SG&A ($0.11 benefit) and tax rate ($0.08) and with MLR 10 bps above our model on $25m or $0.10 of flu costs and $0.05 of transaction costs. Revenue was $9.56B, slightly below JPMe/consensus of $9.68B/$9.75B. 2013 EPS guidance unchanged despite inclusion of MDF acquisition $0.06, as offset by $0.20 of Q1 flu now baked into #'s. Although retail MLR guidance is up 50 bps (~$0.50 of EPS based on midpoint of rev guidance), the operating earnings guidance for the segment (and also the consolidated SG&A outlook) are unchanged. Open enrollment results in line with expectations, and Med Adv guidance for 2013 reiterated.”

Humana closed on Friday at $75.35.

Posted-In: J.P. MorganAnalyst Color Reiteration Analyst Ratings

 

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