Earnings Preview: Humana

Apr.24.09 | About: Humana Inc. (HUM)

Humana (NYSE:HUM) is expected to report Q1 earnings before market open on Monday, April 27 with a conference call scheduled for 9:00 am ET.


Analysts are looking for a profit of $1.17 on revenue of $7.65B. The consensus range is $1.08-$1.68 for EPS, and revenue of $7.41B-$7.87B, according to First Call. In February, the company reported Q4 EPS $1.03 vs. consensus of $1.07 and Q4 revenue $7.49B vs. consensus $7.37B. On March 19, Humana gave FY09 EPS guidance of $5.90-$6.10 vs. consensus of $5.93.

Analyst Views

The positive driver for this quarter and for FY09 is an increase in Medicare Advantage members while increased competition in the managed health care market might have made it difficult to grow revenue this quarter.

On April 17, Oppenheimer lowered its target on Humana to $60 from $73. Oppenheimer's analysis of 2008 filings indicates that Humana's overall Medicare Advantage MLR dropped by 80 basis points last year. The firm lowered its 2010 EPS estimate for Humana to $6.30 from $7.00, but maintained its Outperform rating.