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Humana Q4 Profit Slides; Backs FY13 EPS View - Quick Facts

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Health insurer Humana Inc. (HUM: Quote) reported a decline in fourth-quarter net income to $192 million, or $1.19 per share, from the year-ago figure of $199 million, or $1.20 per share. The latest quarter results were relatively unchanged versus last year, but exceeded management's expectations. On average, 20 analysts polled by Thomson Reuters expected earnings per share of $1.07 for the quarter. Analysts' estimates typically exclude one-time items.

Quarterly consolidated revenues were $9.56 billion, a 5.5% increase from $9.06 billion in the 2011 period, with total premiums and services revenue up 5 percent year-on-year. Analysts estimated revenues of $9.73 billion for the quarter. The company attributed the growth in premiums and services revenue to higher Retail and Employer Group segment revenues resulting from higher average individual and group Medicare membership, partially offset by the company's new South Region TRICARE contract being accounted for as self-funded versus fully-insured for the prior contract.

Looking ahead to the first quarter, earnings per share were estimated to range from $1.75 to $1.85, whereas 16 analysts expect first-quarter earnings per share of $1.53.

For fiscal 2013, the company still expects earnings per share of $7.60 to $7.80 as improving operating results and modest accretion from the Metropolitan Health Networks, Inc. acquisition that closed in late fiscal 2012 are expected to be generally offset by slightly higher flu-related medical costs than previously anticipated, as well as additional interest expense associated with the company's recent senior notes offering. Revenue for the year is now anticipated to lie between $41.0 billion and $41.5 billion.

Analysts project earnings of $7.89 per share and revenue of $41.43 billion for fiscal 2013.

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by RTT Staff Writer

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