Humana Increases Sales but Misses Estimates on Earnings
Humana (NYS: HUM) reported earnings on Feb. 6. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Humana missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded significantly.
Margins grew across the board.
Humana reported revenue of $9.06 billion. The 10 analysts polled by S&P Capital IQ expected to see revenue of $9.26 billion. Sales were 8.5% higher than the prior-year quarter's $8.35 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.12. The 18 earnings estimates compiled by S&P Capital IQ predicted $1.20 per share on the same basis. GAAP EPS of $1.20 for Q4 were 90% higher than the prior-year quarter's $0.63 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 22.0%, 320 basis points better than the prior-year quarter. Operating margin was 3.8%, 140 basis points better than the prior-year quarter. Net margin was 2.2%, 90 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $10.26 billion. On the bottom line, the average EPS estimate is $1.76.
Next year's average estimate for revenue is $39.06 billion. The average EPS estimate is $8.11.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Humana is outperform, with an average price target of $96.82.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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