Humana Inc. (NYSE:HUM) lifted its outlook after its second quarter profit beat market expectations, rising to US$1.04bn, or US$4.46 a share, from US$636mln, or US$2.06 a share, in the same period a year ago.
Excluding non-recurring items, adjusted earnings per share came to US$3.49, above the market consensus of US$3.08.
Revenue however fell to US$13.53bn from US$14.01bn, just missing the analysts’ expectations of US$13.60bn. The health plan administrator raised its 2017 adjusted EPS outlook to about US$11.50, above the market consensus of US$11.14.
Humana said it expects 74% of its June 30, 2017 Medicare Advantage membership to be in 4-star plans or higher for bonus year 2018.
As of October 2016, the company had said the percentage of its July 31, 2016 Medicare Advantage membership in 4-star plans or higher had declined to 37% for 2018.