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.
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