Humana’s latest quarterly earnings report shows the Louisville-based insurance firm upping both its revenues and net income, although earnings still didn’t match Wall Street estimates. Consequently, the firm’s stock took a hit on the news.
The earnings are for the first quarter of 2015 and came out today.
For the quarter, Humana had total revenues of $13.8 million, up 18 percent versus 2014. The firm’s net income for the quarter was $430 million, a 16.8 percent boost from the year prior. Humana also increased its quarterly dividend $0.29 per share.
Humana also reaffirmed its estimate for 2015’s EPS to end the present year in the range of $8.50 to $9. Humana said this EPS estimate reflects strong growth and more efficiency in the firm’s Medicare offerings, and improvements in its Healthcare Services businesses.
“Our first-quarter achievements included substantial revenue and membership growth, announcement of the launch of our population health technology business … the pending sale of Concentra, and the completion of our accelerated share repurchase program, as well as strong pre-tax income,” said Bruce Broussard, Humana’s CEO, in a statement.
Now the other news. Humana’s quarterly earnings came in at $2.47 per share, whereas average analysts estimates were $2.56. “The company has now missed the Street in four out of the last six quarters,” Chris Rigg, an analyst with Susquehanna Financial Group, wrote in a report. Humana’s earnings miss comes as many of its competitors — including Aetna, and Anthem — have beaten earnings projections for the quarter.
Investors also didn’t like this news, and Humana’s stock was down 7 percent at midday.
Humana said part of the reason its earnings didn’t match projections was higher-than-usual hospital admissions during the quarter, which CEO Broussard said may have stemmed from an unusually long flu season. He said this uptick “looks like an isolated incident.”