NEW YORK (TheStreet) -- Humana (HUM - Get Report) shares are up 1.11% to $150.13 in trading on Wednesday after the health insurer provided strong fiscal 2015 guidance despite weak fourth quarter earnings.
For the fourth quarter the company reported earnings of $1.09 per diluted share, missing analysts' estimates for the period by seven cents. The company generated revenue of $12.33 billion, a 21% year over year increase that fell below analysts' $12.4 billion expectations.
The company reaffirmed its full year earnings expectations of between $8.50 and $9 per share on revenue between $55.4 billion and $55 billion, and predicted strong growth in its Medicare offerings. By comparison, the company earned $7.36 per share in fiscal 2014.
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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 multiple 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."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: HUM Ratings Report