U.S. Markets closed

Humana's (HUM) Q2 Earnings Beat Estimates, Ups Guidance

Zacks Equity Research
1 / 2

Humana's (HUM) Q2 Earnings Beat Estimates, Ups Guidance

Humana's (HUM) second quarter earnings reflect growth on the back of higher revenues, view raised.

Have you been eager to see how Humana Inc. HUM performed in Q2 in comparison with the market expectations? Let’s quickly scan through the key facts from this popular global professional services company’s earnings release this morning.

An Earnings Beat

Humana came out with operating earnings of $3.96 per share, which beat the Zacks Consensus Estimate of $3.79.

Humana Inc. Price and EPS Surprise

Humana Inc. Price and EPS Surprise | Humana Inc. Quote

Earnings Surprise History

Humana has a solid earnings surprise history. The company delivered positive surprises in each of the last four quarters, with an average beat of 6.2%.

How Was the Estimate Revision Trend?

You should note that the earnings estimate for Humana depicted neutral stance prior to the earnings release. The Zacks Consensus Estimate remained unchanged at $3.79 per share over the last 7 days.

Revenues Beat Expectations

Humana posted adjusted consolidated revenues of $14.2 million, which was higher than the Zacks Consensus Estimate of $14.1 billion.

Key Q2 Statistics

Benefit ratio deteriorated 90 basis points to 84.3% in the quarter.

Operating cost ratio deteriorated 180 basis points to 12.5%.

Operating cash flow totaled $99 million in the second quarter, up from $83 million in year ago quarter.

2018 Guidance Raised

For 2018, Humana expects adjusted earnings per diluted share to be around $414.15, up from $13.70-$14.10 guided earlier.

What Zacks Rank Says

Humana carries a Zacks Rank #2 (Buy). However, since the latest earnings performance yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Check back later for our full write up on this Humana earnings report!

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Humana Inc. (HUM) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research