Earnings Preview: Humana

| About: Humana Inc. (HUM)

Humana (NYSE:HUM) is expected to report Q4 earnings on Monday, February 2 before the market opens, with a conference call scheduled for 9:00 am ET.


Analysts are expecting a profit of $1.07 on revenue of $7.37B. The consensus range for EPS is $1.01-$1.18 with a revenue range of $7.03B-$7.67B, according to First Call. For Q3, the company reported EPS of $1.49 vs. consensus of $1.47, and revenue of $7.15B vs. consensus of $7.34B.

Analyst Views

On January 12, the company reaffirmed FY08 EPS $3.80-$3.90 vs. consensus of $4.28. In addition, the company said it expects gross sales for Medicare Advantage for 2009 to be higher than previously forecast, while gross sales for stand-alone Prescription Drug Plans are expected to be in-line with previous projections. For 2009, the company still anticipates net additions of 25,000 to 75,000 members to its Medicare Advantage program, but expects the decline in membership in the Company's stand-alone Prescription Drug Plans to be higher than previously forecast.

On December 18, Humana was initiated with an Underweight and a target of $28 at Morgan Stanley. On December 17, Goldman Sachs downgraded Humana to Neutral from Buy. Goldman downgraded Humana citing expectations for Medicare Advantage cuts.