Humana Earnings: Profit Southbound, but Beats Expectations

  Google+ | + More Articles
  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

S&P 500 (NYSE:SPY) component Humana Inc. (NYSE:HUM) reported its results for the third quarter. Humana is a managed health care company that offers health and supplemental benefit products.

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now

Humana Inc. Earnings Cheat Sheet

Results: Net income for the medical-HMO fell to $426 million ($2.62 per share) vs. $444.8 million ($2.67 per share) a year earlier. This is a decline of 4.2% from the year-earlier quarter.

Revenue: Rose 3.8% to $9.65 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Humana Inc. beat the mean analyst estimate of $2.05 per share. It fell short of the average revenue estimate of $10.09 billion.

Quoting Management: “Our third-quarter results demonstrate that the issues which surfaced in the second quarter have stabilized,” said Bruce D. Broussard, President of Humana. “We believe our improving operations and continued Medicare membership growth, together with our integrated care delivery system investments, position Humana well for a dynamic future.”

Key Stats:

Revenue has increased for four quarters in a row. Revenue increased 4.5% to $9.7 billion in the second quarter. The figure rose 11.2% in the first quarter from the year earlier and climbed 8.5% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company’s net income has now fallen for three straight quarters. In the second quarter, net income fell 22.7% from the year earlier, while the figure fell 21.3% in the first quarter.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of $2.34 versus a mean estimate of net income of $2.23 per share.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is $1.28 per share, down from $1.35 ninety days ago. For the fiscal year, the average estimate has moved down from $7.17 a share to $7.15 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. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

Is AT&T’s Stock a Buy as iPhone Sales Soar?

Is LinkedIn Still a Wall Street Darling?

Should Netflix Shareholders Hope for a Buyout?

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business