Earnings Preview: Humana

Oct.30.09 | About: Humana Inc. (HUM)

Humana (NYSE:HUM) is expected to report Q3 earnings on Monday, November 2 before the market opens, with a conference call scheduled for 9 am ET.


Analysts are looking for EPS of $1.77 on revenue of $7.82B. The consensus range is $1.61-$1.83 for EPS, and $7.67B-$8.03B for revenue, according to First Call.

Analyst Views

Positive drivers for the quarter could come from 50,000 additional Medicare Advantage, MA, members. Negative headwinds will most likely come from the difficult economy, stagnant job growth and Medicare Advantage rate cuts.

On October 22 Oppenheimer said Humana has several upcoming catalysts. Oppenheimer predicts that the consensus EPS estimate and valuation multiple for Humana will likely increase over the next couple of months. The firm thinks Humana is the best stock to own in the managed care sector and maintains an Outperform rating on the stock.