Humana 3Q profit jumps on government programs

[November 02, 2009]  NEW YORK (AP) -- Health insurer Humana Inc. said Monday its third-quarter profit rose 65 percent on a boost from government programs, mainly on higher enrollment and premiums from Medicare Advantage.

The company earned $301.6 million, or $1.78 per share, up from profit of $183 million, or $1.09 per share, a year prior. Revenue jumped 8 percent to $7.72 billion from $7.15 billion.

Analysts polled by Thomson Reuters expected profit of $1.77 per share on $7.82 billion in revenue.

An 11 percent boost in Medicare Advantage membership, coupled with new premiums lifted revenue as the commercial segment continues to slide because of unemployment and a weak economy. Medicare Advantage membership rose 11 percent, helping to push the unit's revenue up 18 percent. That compares with a 4 percent slide in Commercial unit enrollment, prompting a 1 percent dip in revenue.

Humana, headquartered in Louisville, Ky., still expects full-year profit of $6.15 per share on revenue of about $31 billion, while analysts forecast $6.14 per share in profit on $31.24 billion in revenue.

Meanwhile, the company said it expects fiscal 2010 profit between $5.05 and $5.25 per share on revenue between $32 billion and $34 billion. Analysts expect 2010 profit of $5.36 per share on $29.63 in revenue.

[Associated Press]

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.