Humana (HUM) Stock Closed Lower Today After Third Quarter Earnings Results

NEW YORK (TheStreet) -- Shares of Humana Inc. (HUM) closed down 6.64% to $130.58 after the company said its earnings fell in the 2014 third quarter as the health insurer continued to feel pressure from costs related to insurance exchanges and new, expensive hepatitis C drugs, according to the Wall Street Journal.

Humana posted earnings of $290 million, or $1.85 a share, down from $368 million, or $2.31 a share, a year earlier. Revenue rose 19% to $12.24 billion.

Analysts were expecting per-share earnings of $2 and revenue of $12.35 billion, according to Thomson Reuters.

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"As expected, EPS for 3Q14 was lower than that for 3Q13 due primarily to investments in health care exchanges and state-based contracts and higher specialty prescription drug costs associated with a new treatment for Hepatitis C, partially offset by membership growth, improved utilization from increased membership in clinical programs, and a lower diluted share count," the company said.

Separately, TheStreet Ratings team rates HUMANA INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate HUMANA INC (HUM) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

You can view the full analysis from the report here: HUM Ratings Report

HUM Chart HUM data by YCharts

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