Humana Provides Downbeat Profit Outlook Ahead Of Discussion Of Aetna Buyout

Health insurer Humana Inc. provided on Monday a profit outlook that was well below expectations, ahead of a conference call to discuss the deal announced over the holiday weekend to be acquired by Aetna Inc. for $37 billion. In a regulatory filing, Humana said it now expects second-quarter adjusted earnings per share in the range of $1.60 to $1.65, and full-year adjusted EPS of $7.75. That compares with the FactSet consensus of $2.36 and $8.64, respectively. The adjusted EPS excludes the expected gain from the sale of Humana's Concentra business. Humana will host a conference call at 8:30 a.m. Eastern to discuss the merger deal. Humana's stock, which climbed 3.1% in premarket trade, had run up 31% year to date through Thursday, compared with a 0.9% gain in the S&P 500. Aetna's stock slumped 5.2% ahead of Monday's open.