The FINANCIAL — Humana Inc. (HUM: News ) reported that its fourth-quarter net income was $250.66 million or $1.48 per share, compared to $174.08 million or $1.03 per share in the same quarter last year.
Analysts had been expecting earnings of $1.48 a share according to data compiled by FactSet, Market Watch reports. Revenue at the health benefits firm rose to $7.37 billion, from $7.25 billion a year ago. "Looking ahead, we see multiple revenue growth opportunities across our spectrum of products for 2010," said CEO Michael McCallister.
For the first-quarter 2010, the company anticipates earnings per share to be between $1.10 and $1.20 per share. Analysts expect the company to report earnings of $1.03 per share for the quarter, according to RTT News. For fiscal 2010, the company now anticipates earnings per share to be in the range of $5.15 – $5.35, compared to its previous estimate of $5.05 to $5.25. Analysts expect the company to report earnings of $5.40 per share for fiscal 2010.
For full year 2010, the company now expects consolidated revenues to be between $33 billion and $34 billion, compared to prior outlook of $32 billion – $34 billion, the same source reports. Nine analysts have consensus revenue estimate of $33.08 billion for fiscal 2010.
The commercial segment's loss widened in the quarter, mostly because a greater percentage of premiums went for medical costs and higher overhead costs, according to The Wall Street Journal. Commercial enrollment fell 6% from a year earlier. Medicaid Advantage enrollment rose 5% to 1.5 million from a year earlier.
Humana's benefits ratio, the percentage of premium revenue used to pay medical bills, fell to 81.8% from 83.3% a year earlier, the same source reports. Shares closed Friday at $48.62 and didn't trade premarket. The stock is up 28% this year.
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