Humana says its revenue was 23.6% higher in the fiscal third quarter

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Nov 3, 2020
  • Humana says its revenue was 23.6% higher in the fiscal third quarter.
  • The health insurance company posts £1.35 billion of net income in Q3.
  • Humana raised annual guidance for Medicare Advantage membership growth.

Humana Inc. (NYSE: HUM) published its financial results for the fiscal third quarter on Tuesday that came in better than what analysts had anticipated. The company also raised its annual guidance for Medicare Advantage membership growth.

Shares of the company jumped 5% on market open on Tuesday. Including the price action, Humana is now trading at £325 per share versus a sharply lower £165 per share in late-March. In comparison, the stock had a per-share price of £279 at the start of the year. Interested in investing in the stock market online? Here’s a simple guide to get you started.

Humana’s Q3 financial results versus analysts’ estimates

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Humana said that its net income in the third quarter printed at £1.35 billion that translates to £7.70 per share. In the same quarter last year, it had reported £680.72 million or £3.94 per share. Adjusted for one-time items, the health insurance company earned £2.36 per share versus a much higher £3.86 per share in the comparable quarter of last year.

In terms of revenue, the American for-profit company posted a 23.6% annualised growth to £15.39 billion. FactSet Consensus for Humana’s third-quarter earnings and revenue stood at £2.15 and £14.27 billion, respectively. Humana partnered with Cohere Health last month to modernise prior authorisation and improve physician and member experience.

The Louisville-based company now forecasts Medicare Advantage memberships to grow in 2020 to 375 thousand versus up to 360 thousand estimated earlier.

CEO Bruce Broussard’s comments on Tuesday

CEO Bruce Broussard commented on the earnings report on Tuesday and said:

“We continue to see more Medicare beneficiaries choosing Medicare Advantage (MA) plans over Medicare-Fee-For-Service due to MA’s ever-increasing value proposition. What’s driving this strong value is the fact that plans must constantly innovate to stay competitive as Medicare beneficiaries have the freedom to choose a plan that’s affordable for them and that suits their lifestyle needs.”

In separate news from the United States, online payments processor, PayPal said on Monday that its net income in the fiscal third quarter jumped more than 100% as the COVID-19 crisis fuelled e-commerce in recent months.

Humana performed fairly upbeat in the stock market last year with an annual gain of about 30%. At the time of writing, the American health insurance firm is valued at £42.84 billion and has a price to earnings ratio of 16.07.

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