Humana Earnings: Here’s Why the Stock is Up Now

Humana Inc. (NYSE:HUM) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1.67%.

Humana Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 12.39% to $2.63 in the quarter versus EPS of $2.34 in the year-earlier quarter.

Revenue: Rose 6.41% to $10.32 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Humana Inc. reported adjusted EPS income of $2.63 per share. By that measure, the company beat the mean analyst estimate of $2.47. It missed the average revenue estimate of $10.34 billion.

Quoting Management: “Our second quarter’s solid operating performance reflects the continued focus and executional discipline involved in key initiatives like our chronic care program, including increased care management professional staffing and clinical assessments,” said Bruce D. Broussard, President and Chief Executive Officer of Humana. “The favorable outcomes seen from those programs year to date reinforce our commitment to the related planned investments in the second half of 2013. We believe maintaining momentum on those and other key capability-building initiatives, together with our focus on operating cost efficiencies, will effectively position Humana to face the reform-related challenges that accelerate in 2014.”

Key Stats (on next page)…

Revenue decreased 0% from $0 in the previous quarter. EPS decreased 10.85% from $2.95 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 $2.38 to a profit $2.13. For the current year, the average estimate has moved up from a profit of $8.04 to a profit of $8.68 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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