Just as in Q2, Louisville-based Humana bolstered its year-end guidance thanks to strong performance in its Medicare Advantage pool.
Humana Inc. reported $901 million in GAAP pretax income and an earnings per diluted common share (EPS) of $4.65 in Q3, according to their earnings report released Wednesday morning.
The Louisville-based health plan recorded an adjusted EPS of $4.58 in Q3, up from $3.39 in Q3 2017, as well as a consolidated revenue of $14.2 billion, which exceeded $13 billion this time last year.
The driver behind the insurer's financial fortitude was the strength of the Medicare Advantage membership pool and for the second quarter in a row, Humana raised its year-end EPS guidance by $0.25 per share to $11.96 per share.
"As we enter the fourth quarter, we are encouraged by our performance this year, with adjusted EPS growth in excess of 20 percent," Bruce Broussard, CEO of Humana, said in a statement. "In addition to focusing on core earnings growth, we continue to improve our quality and customer experience."
Last Friday, Humana announced that it would be issuing a cash dividend of $0.50 per share payable to its shareholders on January 25, 2019.
ADDITIONAL Humana Q3 EARNINGS REPORT HIGHLIGHTS:
For the first nine months of 2018, Humana achieved a pretax income of $1.6 billion
Humana's 12 contracts rated 4-star or above represent 84% of the company's Medicare Advantage membership.
The insurer's individual Medicare Advantage membership remained just above 3 million patients at the end of Q3, an increase of 194,400 members compared to Q3 2017.
For complete financial information, review Humana's filing with the Securities and Exchange Commission.
Jack O'Brien is the finance editor at HealthLeaders.
Consolidated pretax income totalled $901 million, well above $799 million posted this time last year.
Humana will deliver a cash dividend of $0.50 per share payable to shareholders in late January 2019.
CEO Bruce Broussard said Medicare Advantage members will "experience stable or enhanced benefits" next year.