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Humana Q3 Profit Tops Views

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Humana Inc (NYSE: HUM) reported stronger-than-expected earnings for the third quarter on Friday, but the company's sales missed analysts' expectations.

The Louisville, Kentucky-based company reported a quarterly profit of $314 million, or $2.09 per share, versus a year-ago profit of $290 million, or $1.85 per share. Excluding items, the company's earnings increased to $2.16 per share.

Its total revenue rose 9.2 percent to $13.36 billion, while premiums and services revenue gained 9 percent to $13.23 billion. However, analysts were expecting earnings of $2.13 per share on revenue of $13.64 billion.

The average estimate among 25 Estimize users was for earnings of $2.18 per share and revenue of $13.54 billion.

Individual Medicare Advantage membership climbed 13.9 percent at the end of the quarter, while Medicaid membership increased 24 percent.

At September 30, 2015, Humana had $10.90 billion in cash, cash equivalents, and investment securities, compared to $11.13 billion at June 30, 2015.

"As we look to 2016, we anticipate marked improvement in our Medicare and individual commercial businesses as a result of actions taken during 2015," added Brian A. Kane, Senior Vice President and Chief Financial Officer. "However, we remain cautious with regard to our expectations around 2016 earnings growth due to the ongoing challenges in the individual commercial business and as we continue to evaluate the impact of the Medicare financial recovery process changes made during 2014."

For full year 2015, Humana reaffirmed its earnings forecast of around $7.75 per share.

Humana shares gained 1.27 percent to close at $179.13 yesterday.

 

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Posted-In: profitEarnings News Guidance

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