UPDATE: Humana Q4 Profit Misses Expectations

reported weaker-than-expected earnings for the fourth quarter. The Louisville, Kentucky-based company posted quarterly pretax income of $287 million, or $0.94 per share, versus a year-ago loss of $49 million, or $0.19 per share. Humana posted quarterly earnings of $145 million, or $0.94 per share, versus a loss of $30 million, or $0.19 per share. Excluding items, adjusted earnings gained to $1.09 per share from $0.80 per share. Its revenue gained 21% to $12.33 billion. However, analysts were expecting earnings of $1.16 per share on revenue of $12.4 billion. Operating expenses climbed 17% to $11.96 billion in the quarter. For 2015, Humana reiterated its outlook of a 13% gain in Medicare Advantage membership. For the full year, Humana projects earnings of $8.50 to $9 per share, on revenue of $54.5 billion to $55 billion. "This past year was particularly dynamic considering Medicare rate reductions, increased income taxes, the launch of healthcare exchanges and our entry into state-based contracts," said Bruce D. Broussard, President and Chief Executive Officer of Humana. "Our 2014 results in the face of these challenges, combined with strong 2015 membership growth, demonstrate the strength of our consumer-focused strategy and integrated care delivery model. We are pleased with our projected growth trajectory and believe we are well positioned for success in 2015 and beyond." Humana shares rose 1.78% to close at $148.58 yesterday.