Humana 3Q Profit Nearly Doubles on Gains

LOUISVILLE — Health insurer Humana Inc. said Monday its third-quarter profit nearly doubled year-over-year, due to strong membership growth and one-time gains in its government segment, as well as improvements in the companys commercial operations and stand-alone Medicare Prescription Drug Plans.

Net income for the quarter ended Sept. 30 grew to $302.4 million, or $1.78 per share, from $159.2 million, or 95 cents per share, a year ago. Excluding one-time gains of 25 cents per share related to resolving claims development in its government segment, Humana earned $1.53 per share in the latest quarter.

Revenue rose 12 percent to $6.32 billion from $5.65 billion a year ago, with total premium and administrative services fees up 11 percent on higher average Medicare membership.

Analysts surveyed by Thomson Financial expected profit of $1.49 per share on revenue of $6.21 billion.

Humana said government Medicare Advantage membership grew 15 percent to 1.14 million at Sept. 30, helped by the companys expanded participation in various Medicare products and markets and increased sales and marketing efforts. Government Medicare Advantage premiums of $2.83 billion were up 19 percent on higher average membership.

The company said commercial segment medical membership of 3.3 million was about flat with year-ago and sequential results. Premiums and administrative services fees for the commercial segment increased 2 percent to $1.61 billion as per-member premium increases were partially offset by lower average fully insured group membership.

Looking ahead, the company lifted its outlook for fiscal 2007 profit to a range of $4.75 to $4.80 per share, from $4.40 to $4.50 per share previously, to include the third-quarter gains of 25 cents per share. Revenue is forecast to be about $25 billion.

Analysts are expecting earnings of $4.52 per share on revenue of $24.99 billion.

Humana predicts 2008 earnings per share will be about $5.30 to $5.50 per share on revenue of about $28 billion to $30 billion. Wall Street has forecast profit of $5.17 per share on revenue of $27.17 billion.

Back To Top

	P&G 1Q Profit Rises, Tops View	Associated Press	Tue Oct 30	0
	Verizon 3Q Profit Drops on Tax Charge	Associated Press	Mon Oct 29	0
	GPS Maker Garmin's 3Q Profit Rises	Associated Press	Wed Oct 31	0
	Colgate-Palmolive 3Q Profit Up 22 Pct	Associated Press	Tue Oct 30	0
	Colgate, P&G Profits Up	Associated Press	Tue Oct 30	0