Humana Q1 Profit Tops Estimates; Raises FY19 Earnings Outlook

(RTTNews) - Humana Inc. (HUM) reported that its first-quarter GAAP and adjusted pretax income and EPS results exceeded management expectations, primarily driven by lower than anticipated utilization in the individual Medicare Advantage business. The strong performance allowed the company to raise full year adjusted EPS guidance to a range, reflecting expected adjusted EPS growth of 19 to 20 percent.

For the first-quarter, adjusted EPS was $4.48 compared to $3.36, a year ago. On average, 21 analysts polled by Thomson Reuters expected the company to report profit per share of $4.30 for the quarter. Analysts' estimates typically exclude special items. Adjusted pretax income increased to $803 million from $684 million.

For the first-quarter, GAAP earnings per share was $4.16 compared to $3.53, prior year. GAAP pretax income increased to $746 million from $707 million.

First-quarter adjusted revenues were $16.11 billion compared to $14.28 billion, previous year. Analysts expected revenue of $15.78 billion for the quarter.

For fiscal 2019, Humana now expects EPS to be in a range of approximately $16.63 to $16.88, while adjusted EPS is expected to be in a range of approximately $17.25 to $17.50. Analysts expect the company to report profit per share of $17.43, for the fiscal year. The company increased full year expected individual Medicare Advantage membership growth to 415,000 to 440,000 members, representing approximately 14 percent growth in 2019.

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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