Humana and HCP Lead Healthcare Stocks After Earnings

Humana Inc. (NYSE:HUM) reported net income above Wall Street’s expectations for the third quarter. Net income for the health care plans company rose to $444.8 million ($2.67 per share) vs. $393.2 million ($2.32 per share) in the same quarter a year earlier. This marks a rise of 13.1% from the year earlier quarter. Revenue rose 11% to $9.3 billion from the year earlier quarter. HUM reported adjusted net income of $2.54 per share. By that measure, the company beat the mean estimate of $2.02 per share. Analysts were expecting revenue of $9.25 billion.

“Our favorable results in the third quarter and year to date reflect strong operating performance across multiple businesses,” said Michael B. McCallister, Humana’s chairman of the board and chief executive officer. “In Medicare, our clear focus on strong financial protection and higher quality coordinated health care for seniors represents a powerful value proposition, and continues to drive membership growth, now nearly 4.5 million people.”

Competitors to Watch: CIGNA Corporation (NYSE:CI), WellPoint, Inc. (NYSE:WLP), UnitedHealth Group Inc. (NYSE:UNH), Universal American Corp. (NYSE:UAM), HealthSpring, Inc (NYSE:HS), Aetna Inc. (NYSE:AET), Molina Healthcare, Inc. (NYSE:MOH), Health Net, Inc. (NYSE:HNT), Triple-S Management Corp. (NYSE:GTS), and WellCare Health Plans, Inc. (NYSE:WCG).

HCP Inc. (NYSE:HCP) reported its results for the third quarter. The company’s funds from operations (FFO) rose 16.7% from the year earlier quarter to 63 cents. FFO, a measure of performance of a real estate investment trust (REIT), removes the profit-reducing effect that depreciation has on earnings.  Revenue  rose 40.2% to $444.7 million. The company reported adjusted FFO of 67 cents a share. By that measure, it come in ahead of the consensus estimate of 66 cents per share. FFO, a measure of performance of a real estate investment trust (REIT), removes the profit-reducing effect that depreciation has on earnings.

Competitors to Watch: LTC Properties, Inc. (NYSE:LTC), Omega Healthcare Investors, Inc. (NYSE:OHI), National Health Investors Inc (NYSE:NHI), Medical Properties Trust, Inc. (NYSE:MPW), Healthcare Realty Trust Inc. (NYSE:HR), Health Care REIT, Inc. (NYSE:HCN), Senior Housing Properties Trust (NYSE:SNH), Universal Health Realty Income Trust (NYSE:UHT), Ventas, Inc. (NYSE:VTR), and Nationwide Health Properties Inc. (NYSE:NHP).

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