Humana says its revenues were 23.6% higher in the third quarter of the fiscal year.
The health insurance company posted a net profit of £1.35 billion in the third quarter.
Humana raised its annual forecast for Medicare Advantage membership growth.
Humana Inc. (NYSE: HUM) on Tuesday released its financial results for the third quarter of the fiscal year, which were better than analysts had expected. The company also raised its full-year forecast for Medicare Advantage membership growth.
The company’s shares rose 5% when the market opened on Tuesday. Including the price action, Humana is now trading at £325 per share, down from a much lower £165 per share at the end of March. This compares to £279 per share at the beginning of the year. Are you interested in investing in the stock market online? Here is a simple guide to help you get started.
Humana’s financial results for the 3rd quarter compared to analysts’ estimates
Humana said its third quarter net profit was printed at £1.35 billion, or £7.70 per share. In the same quarter last year the company reported £680.72 million or £3.94 per share. Adjusted for non-recurring items, the health insurance company earned £2.36 per share, compared with a much higher £3.86 per share in the same quarter last year.
In terms of revenues, the U.S. for-profit company recorded annualized growth of 23.6% to £15.39 billion. The FactSet consensus for Humana’s third quarter profits and revenues was £2.15 and £14.27 billion respectively. Humana partnered with Cohere Health last month to modernise pre-approval and improve the experience of physicians and members.
The Louisville-based company now predicts that Medicare Advantage membership will grow to 375,000 in 2020, up from up to 360,000 previously estimated.
CEO Bruce Broussard’s comments on Tuesday
CEO Bruce Broussard commented on the results report on Tuesday and said
“We continue to see more and more Medicare beneficiaries opting for Medicare Advantage (MA) plans rather than Medicare Fee-for-Service plans because of the ever-increasing value offered by MA. What drives this strong value is the fact that the plans must constantly renew themselves to remain competitive, as Medicare beneficiaries have the freedom to choose a plan that is affordable to them and meets their lifestyle needs.
In a separate message from the United States, the online payment processor, PayPal said Monday that its net income rose more than 100% in the third quarter of the fiscal year as the COVID 19 crisis fueled e-commerce in recent months.
Humana has performed quite well on the stock market last year with an annual profit of about 30%. At the time of writing this article, the American health insurance company is estimated at 42.84 billion pounds and has a price-to-earnings ratio of 16.07.