Humana’s Q2 Results Blow Away View; Forecast Raised; Shares Surge (HUM)


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Health benefits provider Humana Inc. ( HUM ) on Monday posted much-higher-than-expected second quarter earnings and boosted its full-year outlook, sending its shares soaring in premarket trading.

The Louisville, KY-based company reported second quarter net income of $460.3 million, or $2.71 per share, compared with $340.1 million, or $2 per share, in the year-ago period.

Revenue rose 8% from last year to $9.28 billion.

On average, Wall Street analysts expected a much smaller profit of $2.06 per share, albeit on higher revenue of $9.35 billion.

Looking ahead, the company forecast third quarter profits to range from $1.95 to $2.05 per sharem while analysts are looking for $1.96.

For the full year, HUM boosted its outlook to a range of $7.50 to $7.60 per share, up from a prior estimate of $6.70 to $6.90. Analysts are currently expecting a much-lower $7.07 per share for the year.

Humana shares rose $4.12, or +5.5%, in premarket trading Monday.

The Bottom Line
Shares of Humana ( HUM ) have a 1.34% dividend yield, based on Friday's closing stock price of $74.58. The stock has technical support in the $70-$71 price area. If the shares can firm up, we see overhead resistance around the $79-$80 price levels.

Humana Inc. ( HUM ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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