Humana Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Humana, Inc. (NYSE:HUM) will unveil its latest earnings on Monday, October 31, 2011. Humana is a managed health care company that offers health and supplemental benefit products.

Humana, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $2.02 per share, a rise of 0.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.97. Between one and three months ago, the average estimate moved up. It has risen from $2.01 during the last month. For the year, analysts are projecting profit of $7.68 per share, a rise of 7% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 43 cents, coming in at net income of $2.50 a share versus the estimate of profit of $2.07 a share. It marked the fourth straight quarter of beating estimates.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 9.9% in revenue from the year-earlier quarter to $9.25 billion.

Analyst Ratings: Analysts are bullish on this stock with 15 analysts rating it as a buy, none rating it as a sell and 10 rating it as a hold.

A Look Back: In the second quarter, profit rose 35.3% to $460.3 million ($2.71 a share) from $340.1 million ($2 a share) the year earlier, exceeding analyst expectations. Revenue rose 7.3% to $9.28 billion from $8.65 billion.

Key Stats:

Revenue has risen the past four quarters. Revenue rose 8.9% in the first quarter from the year earlier, climbed 9.4% in the fourth quarter of the last fiscal year from the year-ago quarter and 9.2% in the third quarter of the last fiscal year.

The company has now been profitable for the last eight quarters, and for the last four, profit has risen year over year by an average of 7.6%. The quarter with the biggest boost was the most recent quarter, which saw a 35.3% surge.

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).

Stock Price Performance: During August 1, 2011 to October 25, 2011, the stock price had risen $7.57 (10.5%) from $72.13 to $79.70. The stock price saw one of its best stretches over the last year between March 25, 2011 and April 4, 2011 when shares rose for seven-straight days, rising 7.4% (+$4.87) over that span. It saw one of its worst periods between September 27, 2011 and October 4, 2011 when shares fell for six-straight days, falling 13.6% (-$10.73) over that span. Shares are up $25.30 (+46.5%) year to date.

(Source: Xignite Financials)

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