Positive MA Growth Leads Humana to Boost Year-End Guidance

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. 

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C-Suite Perspective: 

"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."

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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.