Humana Inc. Earnings Cheat Sheet: Beats Wall Street Expectations

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

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Humana Earnings Cheat Sheet for the Third Quarter

Results: 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.

Actual vs. Wall St. Expectations: 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.

Quoting Management: “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.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 35.3% and in the first quarter, the figure rose 21.8%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 43 cents in the second quarter, by 10 cents in the first quarter, and by 85 cents in the fourth quarter of the last fiscal year.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is $1.12 per share, down from $1.19 ninety days ago. The average estimate for the fiscal year is $7.68 per share, a rise from $7.06 ninety days ago.

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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