Humana Boosts Q2 And Full Year Earnings Forecast

Humana Inc. HUM boosted its earnings outlook for the second quarter and full year 2016. The company indicated the improved confidence is mainly due to the better-than-anticipated performance year to date for its individual Medicare Advantage and Healthcare Services businesses. However, it was partially offset by continued challenges in its individual commercial medical (Individual) business.

Humana said it expects an updated adjusted EPS of about $2.28 compared to its earlier forecast of a minimum of $2.15, excluding $0.09 per share of amortization expense for identifiable intangibles. Street analysts expect the company to deliver earnings of $2.19 a share.

For the full year, the company lifted its adjusted earnings outlook to $10.58 a share from a minimum of $9.25 a share projected by it earlier. On a GAAP basis too, it lifted its EPS forecast to $9.89 from a minimum of $8.56. Analysts are looking for earnings of $8.87 a share.

Humana said it also sees 2017 premiums associated with ACA-compliant offerings in the range of $750 million - $1 billion compared to about $3.4 billion estimated for the current fiscal year.

Following this, the stock jumped 6.05 percent on Thursday.