Humana (HUM) reported on Monday a stronger-than-expected 21% rise in second-quarter profits and upped its earnings guidance, boosting the health insurerâ€™s stock more than 4% in the premarkets.
The Louisville-based company said it earned $340.1 million, or $2.00 a share, last quarter, compared with $281.8 million, or $1.67 a share, in the year-earlier period.
Revenue jumped 10% to $8.65 billion.
The results beat expectations from analysts, who forecasted EPS of just $1.67 on slightly lighter revenue of $8.61 billion.
Humana also upgraded its earnings outlook, now projecting 2010 EPS of $5.65 to $5.75 on revenue of between $33.5 billion to $34.5 billion. Analysts estimated Humana would earn $5.71 on $33.94 billion in revenue for 2010. Previously the company saw 2010 EPS of $5.55 to $5.65.
Shareholders cheered the results and outlook, bidding Humanaâ€™s stock 4.5% higher to $49.12. The stock was already up 7.1% on the year as of Fridayâ€™s close.
â€śWe are pleased with this quarter's performance as it is the result of strength in both our Commercial and Government segments,â€ť CEO Michael McCallister said in a statement. â€śIt is clear our value proposition for seniors in Medicare continues to be well received across the country.â€ť
Humana said its Medicare Advantage membership grew by 17% over the last year to 1.76 million.