Humana Lifts EPS Outlook, Announces Acquisition

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By Trey Thoelcke Published

Humana Inc. (NYSE: HUM) said this morning that its third-quarter net income fell 4.3% but it lifted its earnings outlook for the full year. The health care company also announced a pair of deals and the retirement of its chief executive.

The Louisville, Ky.-based company posted adjusted earnings per share (EPS) of $2.62 on revenues of $9.65 billion for the third quarter. In the same period a year ago, the company reported $2.67 per share on revenues of $9.30 billion. The quarter’s results also compare to the consensus estimates for EPS of $2.05 and $9.86 million in revenues.

Humana said that it agreed to pay $11.25 a stake in Metropolitan Health Networks Inc. (NYSE: MDF), a provider of medical care for Medicare, Medicaid and other beneficiaries, mainly in Florida. Humana also will repay all Metropolitan’s outstanding debt.

Humana also agreed to acquire Certify Data Systems Inc., a provider of health-information-exchange technology. Terms were not disclosed.

In addition, Humana said that President Bruce Broussard will CEO on Jan. 1. Michael McCallister will retire as CEO and become nonexecutive chairman.

Humana now expects to earn $7.25 to $7.35 per share for the full year, which is up from its previous estimate of $6.90 to $7.10 per share. The Thomson Reuters consensus estimates call for EPS of $7.14 and $39.34 billion in revenues.

Humana shares are inactive in premarket trading but close Friday at $75.21. The 52-week range is $59.92 to $96.46. The mean price target was $98.40 before the report was released.

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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