Humana Net Rises 34% on Medicare Gains

(Updated with most recent stock movements.)

LOUISVILLE, Ky. (TheStreet) -- Humana(HUM Quote) beat estimates as second-quarter profit surged 34% on a more than 7% jump in revenue due largely to better Medicare premiums.

Net income for the health insurer rose to $281.8 million, or $1.67 a share, from $209.9 million, or $1.24 a share, in the year-earlier period.

Total revenue rose to $7.9 billion in the second quarter from $7.4 billion last year.

On average, analysts expected Humana to post earnings share at $1.64 a share on $7.77 billion in sales.

Shares in the company were changing hands in the morning at $33.33, a 48-cent uptick from its closing price at the end of the day Friday.

Membership in the company's Medicare Advantage plan grew 12% from the year-earlier period, the company said in a press release Monday. That helped Medicare Advantage plan premiums blossom by 19% in the same period to $4.15 billion.

The company's commercial segment premiums grew by 1% to $1.87 billion.

"Our second-quarter results confirm our 2009 financial performance is on track despite pressures from the overall economy," CEO Michael B. McCallister said in a press release. "We're making progress reducing costs and investing in improved health outcomes for our members while we closely monitor events in Washington."

-- Reported by Sung Moss in New York