This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Humana's Messy Mix

Thanks to the booming Medicare business, Humana (HUM - Get Report) sees better days ahead.

The company's third-quarter profit, while up more than threefold from a year ago, fell shy of Wall Street's lofty expectations. But the company's guidance should please investors who are focused on the future.

Humana reaffirmed its 2006 forecast for profits of $2.82 to $2.88 a share, with even the low end of that range topping the consensus estimate. Moreover, the company issued new 2007 earnings guidance of $3.90 to $4.10 a share that came in well ahead of Wall Street's current $3.50 target.

Meanwhile, however, Humana's latest results did miss the mark.

Third-quarter revenue jumped 48% to $5.65 billion but fell short of the $5.9 billion consensus estimate. Net income rocketed to $159 million from $46.8 million due to lucrative enrollment gains - particularly in the Medicare Advantage business - and the absence of year-ago charges. Earnings per share came in at 95 cents, matching the low end of management's guidance but missing Wall Street targets by 2 cents.

For its part, Humana still feels confident that it can hit its targets for the full year. Meanwhile, Humana credited "substantial earnings increases in both of the company's business segments" for its recent success.

As usual, Medicare proved to be the real story. The company saw its Medicare Advantage enrollment nearly double from a year ago, fast approaching the 1 million-member milestone.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
HUM $177.64 0.00%
AAPL $124.25 0.00%
FB $81.66 0.00%
GOOG $542.56 0.00%
TSLA $187.59 0.00%


DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs