An image of a pair of glasses on a newspaper
Markets

Humana Reports Decline in Earnings; Raises 2012 Outlook (HUM)

Healthcare company, Humana Inc.( HUM ) reported a decline in profits for the quarter, but were enough to beat analysts expectations Monday.

The Louisville, KY based company reported third quarter earnings of $426 million, or $2.62 a share, down 4.2% from last years earnings of $445 million, or $2.67 a share. Analysts expected $2.05 a share.

HUM reported revenue of $9.65 billion, up 3% from last years revenue of 9.3 billion. Analysts expected revenue of $9.88 billion.

The decline in profit was partially due to more premium dollars paying for medical claims.

The company also reported that it has increased its full year outlook for 2012. HUM expects to see EPS in the range of $7.25 to $7.35 a share, up from their previous range of $6.90 to $7.10 a share. Analysts are expecting EPS of $7.12 for the year.

The increased outlook is due to improved medical claim reserves, as well as higher enrollment in its Medicare prescription drug plans.

Humana shares were mostly flat during premarket trading Monday.

The Bottom Line

Shares of Humana ( HUM ) have a 1.38% dividend yield, based on Friday's closing stock price of $75.21. The stock has technical support in the $69-$70 price area. If the shares can firm up, we see overhead resistance around the $80 price level.

Humana Inc.( HUM ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 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.

Created by Dividend.com


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

In This Story

HUM

Other Topics

Stocks

Latest Markets Videos