Humana Earnings: Hits on EPS, Misses on Revenue Estimate

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 down 0.46%.

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Humana Inc. Earnings Cheat Sheet

Results: Net income decreased -3.41% to $192 million ($1.19 per diluted share) in the quarter versus a net gain of $198.78 million in the year-earlier quarter.

Revenue: Rose 5.56% to $9.56 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Humana Inc. reported adjusted net income of $1.19 per share. By that measure, the company beat the mean analyst estimate of $1.07. It missed the average revenue estimate of $9.73 billion.

Quoting Management: “The progress we made building our clinical capabilities in 2012 positions us strongly for success in 2014 and beyond,” said Bruce D. Broussard, President and Chief Executive Officer of Humana…

…For 2013, we will continue to enhance our integrated care delivery model, which we believe represents the future of health care delivery, as we forecast another year of growth in revenues, earnings and Medicare membership.”

Key Stats:

Revenue decreased 0.94% from $9.65 billion in the previous quarter. Net income decreased 54.93% from $426 million in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.44 to a profit $1.53. For the current year, the average estimate has moved up from a profit of $7.14 to a profit of $7.49 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)