Humana Inc. (HUM - Get Report) posted better-than-expected second quarter earnings Wednesday, and lifted it full-year profit outlook, as Medicare Advantage sign-ups continue to drive revenue growth for the private insurance group.
Humana said adjusted earnings for the three months ending in June came in at $6.05 per share, more than 50% higher from the same period last year and well ahead of the Street consensus forecast of $5.27 per share. Group revenues, Humana said, rose 14.1% to $16.25 billion and again beat analysts' forecasts of a $15.88 billion tally.
Looking into 2019, Humaan said it sees adjusted earnings in the region of $17.60 per share as full-year individual medial advantage memberships grows to between 480,000 and 500,000.
"We are pleased to deliver strong results in a year Humana is experiencing the highest individual Medicare Advantage membership growth we have seen in the last decade, which is reflective of our operating discipline and execution, investments in our integrated care delivery strategy, and our relentless focus on creating a simple and personalized healthcare experience for our members," said CEO Bruce Broussard.
"As the number of seniors choosing Medicare Advantage plans continues to rise, we will continue to work collaboratively with partners across the industry to advance a consumer-centric system that focuses on improving both health outcomes and the affordability of care," he added.
Humana shares were marked 5% higher following the earnings release with ab opening bell price of $297.48, a move that bumps the stock into modest positive territory for the year.