Humana beats 2nd-quarter Wall Street estimates

[August 01, 2011]  LOUISVILLE, Ky. (AP) -- Humana Inc. posted a 35 percent surge in second-quarter profit Monday as the health insurer benefited from enrollment gains in its Medicare plans and lower use of health care services by its members.

The Louisville-based company, which has expanded into health care delivery, also raised its earnings forecast for the year to a range of $7.50 to $7.60 per share, up from $6.70 to $6.90 per share.

Humana reported a big upswing in pretax income from its retail segment as its individual Medicare Advantage membership rose 10 percent to 1.6 million members at the end of the second quarter. Medicare Advantage plans are government sponsored, privately run programs offering comprehensive health coverage for seniors.

Membership in Humana's stand-alone Medicare prescription drug plans was up 41 percent from a year ago at 2.4 million members. Membership in its individual specialty plans including vision and dental coverage was up 55 percent from a year ago.

Meanwhile, Humana continued to benefit from an industrywide slowdown in health care utilization.

Humana also reported growth in its health and well-being services segment from its acquisition of health care company Concentra Inc., which provides occupational medicine, urgent care, physical therapy and wellness services.

For the three months ended June 30, Humana earned $460.3 million, or $2.71 per share. That compares to nearly $340.1 million, or $2 per share, last year. Revenue in the just-ended quarter totaled $9.28 billion.

Adjusted income, which excludes the impact of favorable prior-year medical claims reserves, was $2.50 per share.

The performance beat Wall Street forecasts. Analysts polled by FactSet predicted, on average, earnings per share of $2.05 on $9.28 billion in revenue.

[Associated Press; By BRUCE SCHREINER]

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