Humana Earnings: Here’s Why Investors are Buying Shares Now

Humana Inc. (NYSE:HUM) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 3.98%.

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Humana Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 80.54% to $2.69 in the quarter versus EPS of $1.49 in the year-earlier quarter.

Revenue: Rose 2.61% to $10.49 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Humana Inc. reported adjusted EPS income of $2.69 per share. By that measure, the company beat the mean analyst estimate of $1.81. It beat the average revenue estimate of $10.25 billion.

Quoting Management: “Our better-than-expected earnings this quarter are a testament to the benefits of our focus on further developing our new member and chronic care clinical programs – key elements of our integrated care delivery model,” said Bruce D. Broussard, President and Chief Executive Officer of Humana. “We expect this model will allow us to maintain and improve the economic value proposition we provide, which we believe will enable long-term earnings growth. On the immediate horizon, while the final 2014 Medicare rate notice remedied some aspects of the major reduction that was initially proposed, funding challenges continue, making 2014 earnings growth uncertain at this time.”

Key Stats (on next page)…

Revenue increased 9.72% from $9.56 billion in the previous quarter. EPS increased 126.05% from $1.19 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $2.39 to a profit $2.30. For the current year, the average estimate has moved up from a profit of $7.89 to a profit of $7.98 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)