Humana (HUM) Tops Q3 EPS by 32c; Raises FY18 EPS Guidance Above Consensus

Humana (NYSE: HUM) reported Q3 EPS of $4.58, $0.32 better than the analyst estimate of $4.26.

• 3Q18 earnings per diluted common share (EPS) of $4.65 on a GAAP basis, $4.58 on an Adjusted basis
• New full year 2018 GAAP EPS guidance of approximately $11.96; Adjusted EPS guidance raised $0.25 from the previous guidance to approximately $14.40
• Strong continued Medicare Advantage performance resulting in improved full year 2018 Retail segment benefit ratio guidance
• Industry leading percentage of Medicare Advantage members currently enrolled in 4-plus star contracts for 2019, including two 5-star contracts in Florida and Tennessee

“Strong top and bottom line growth in 2018, fueled by solid execution, is paving the way for compelling performance in 2019,” said Brian A. Kane, Chief Financial Officer. “We are pleased with the initial positive response to our individual Medicare Advantage offerings for 2019. Meaningful tailwinds, including tax reform and the health insurance industry fee moratorium for 2019, allowed us to invest in benefits for our members and offer competitive Medicare Advantage products which are expected to drive significant membership growth and a year-over-year Adjusted EPS increase in excess of our long-term growth target.”

GUIDANCE:

Humana sees FY2018 EPS of $14.40, versus the consensus of $14.18.

For earnings history and earnings-related data on Humana (HUM) click here.

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