Humana Inc. Earnings Cheat Sheet: Beats Analysts’ Estimates

S&P 500 (NYSE:SPY) component Humana Inc. (NYSE:HUM) reported net income above Wall Street’s expectations for the second quarter. Humana Inc. is a managed health care company that offers health and supplemental benefit products.

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Humana Earnings Cheat Sheet for the Second Quarter

Results: Net income for the health care plans company rose to $460.3 million ($2.71 per share) vs. $340.1 million ($2 per share) in the same quarter a year earlier. This marks a rise of 35.3% from the year earlier quarter.

Revenue: Rose 8% to $9.28 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: HUM reported adjusted net income of $2.50 per share. By that measure, the company beat the mean estimate of $2.07 per share. Analysts were expecting revenue of $9.32 billion.

Quoting Management: “This quarter’s results demonstrate our on-going commitment to operational excellence across all of our lines of business, progress with our 15 Percent Solution and the continuation of low utilization of medical services primarily in our commercial business,” said Michael B. McCallister, Humana’s chairman of the board and chief executive officer. “We believe the reinvestment spending we intend to make in the back half of 2011 will further position us for success in 2012 and beyond.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 10 cents in the first quarter, by 85 cents in the fourth quarter of the last fiscal year, and by 34 cents in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 8.9% to $9.19 billion in the first quarter. The figure rose 9.4% in the fourth quarter of the last fiscal year from the year earlier and climbed 9.2% in the third quarter of the last fiscal year from the year-ago quarter.

Net income has increased 10.2% year over year on average across the last five quarters. The biggest gain came in the most recent quarter, when income climbed 35.3% from the year earlier quarter.

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).

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(Source: Xignite Financials)

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