Free Research Report as Humana’s Q3 Top-Line Beat Market Forecasts

LONDON, UK / ACCESSWIRE / December 22, 2017 / Active-Investors.com has just released a free earnings report on Humana Inc. (NYSE: HUM). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=HUM . The Company posted its financial results on November 08, 2017, for the third quarter of the fiscal year 2017. The Louisville, Kentucky-based Company’s non-GAAP earnings per share (EPS) grew on a y-o-y basis, outperforming Wall Street’s estimates. Register today and get access to over 1000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Humana most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=HUM

Earnings Highlights and Summary

During Q3 FY17, Humana posted total revenues of $13.28 billion, down from the $13.69 billion recorded at the end of Q3 FY16. The Company’s total revenue numbers missed market expectations of $13.29 billion. Total premium revenues were $12.96 billion compared to $13.37 billion in the last year’s same quarter, while total services revenues came in at $223 million in Q3 FY17 versus $227 million in Q3 FY16. Furthermore, Investment income revenues amounted to $104 million in the reported quarter, up from $96 million in Q3 FY16.

The insurer reported a net income of $499 million, or $3.44 per diluted share, in Q3 FY17, up from $450 million, or $2.98 per diluted share, in Q3 FY16. Furthermore, the Company’s adjusted diluted EPS rose to $3.39 million for Q3 FY17 from $3.20 million in the last year’s comparable quarter. Meanwhile, Wall Street had expected Humana to report an adjusted diluted EPS of $3.27.

Operating Metrics

For the three months ended September 30, 2017, the Company reported benefits expenses of $10.64 billion compared to $10.90 billion in the prior year’s corresponding quarter. The Company’s total operating expenses stood at $12.42 billion for the reported quarter compared to $12.75 billion in Q3 FY16. Furthermore, the Company reported income from operations of $858 million in Q3 FY17 versus $949 million in Q3 FY16.

Segment Performance

During Q3 FY17, Humana’s Retail segment’s total premiums and services revenue came in at $11.02 billion compared to $10.81 billion in Q3 FY16. The segment reported income before taxes of $610 million in Q3 FY17 compared to $608 million in the previous year’s same quarter. Additionally, the segment’s operating cost ratio stood at 9.8% in Q3 FY17 versus 10.6% in Q3 FY16.

Humana’s Group and Specialty segment generated total premiums and services revenue of $1.84 billion in Q3 FY17, which came in above the $1.82 billion of the last year’s same quarter. The segment’s income before taxes surged to $93 million in the reported quarter from $37 million in Q3 FY16. Furthermore, the segment’s operating cost ratio fell to 20.9% in Q3 FY17 from 23.1% in Q3 FY16.

Humana’s Healthcare Services segment posted total services and intersegment revenues of $5.99 billion in Q3 FY17 compared to $6.40 billion in Q3 FY16. The segment’s income before taxes was $240 million for reported quarter versus $297 million in Q3 FY16. Furthermore, the segment’s operating cost ratio rose to 95.6% in Q3 FY17 from 94.9% in Q3 FY16.

Balance Sheet

The Company’s net cash provided by operating activities was $6.96 billion in the first nine months of FY17 versus $4.71 billion in the prior year’s comparable period. The Company had a cash and cash equivalents balance of $9.87 billion as on September 30, 2017, compared to $3.88 billion at the close of books on December 31, 2016. Furthermore, the Company posted a long-term debt $3.98 billion as on September 30, 2017, versus $3.79 billion as on December 31, 2016.

Dividend and Share Repurchase

In a separate press release on November 02, 2017, Humana’s Board of Directors declared a cash dividend of $0.40 per share, payable on January 26, 2018, to stockholders of record as of the close of business on December 29, 2017.

On December 14, 2017, the Company’s Board of Directors approved a $3 billion share repurchase authorization with an expiration date of December 31, 2020, replacing its previous $2.25 billion share repurchase authorization.

Stock Performance Snapshot

December 21, 2017 – At Thursday’s closing bell, Humana’s stock marginally declined 0.64%, ending the trading session at $243.58.

Volume traded for the day: 889.40 thousand shares.

Stock performance in the last month – up 3.03%; previous three-month period – up 1.88%; past twelve-month period – up 21.91%; and year-to-date – up 19.38%

After yesterday’s close, Humana’s market cap was at $35.13 billion.

Price to Earnings (P/E) ratio was at 19.17.

The stock has a dividend yield of 0.66%.

The stock is part of the Healthcare sector, categorized under the Health Care Plans industry. This sector was up 0.1% at the end of the session.

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