Earnings Preview: Humana

Apr.23.10 | About: Humana Inc. (HUM)

Humana (NYSE:HUM) is expected to report Q1 earnings Monday, April 26 before the market open with a conference call scheduled for 9 am ET.


Analysts are looking for EPS of $1.15 on revenue of $8.27B. The consensus range is $1.11-$1.20 for EPS, and $7.9B-$8.5B for revenue, according to Reuters. In early February, Humana gave Q1 guidance of EPS $1.10-$120. At the time consensus estimates for Q1 EPS was $1.04. This quarters earnings should benefit from Medicare Advantage gains. On the company's Q4 earnings conference call in early February, CEO Mike McCallister gave an update on Medicare Advantage. With sales on target and attrition coming in lower than previously projected, the company is anticipating overall net Medicare Advantage 2010 membership gains of between 240,000 and 260,000. Possible negatives for the quarter would be an increase in medical costs.

Analyst Views

On April 20, Humana was initiated with an Outperform at Wedbush. The firm has a price target of $53 on the shares.