Humana shares up 1.7% premarket after earnings beat

Humana Inc. shares jumped 1.7% premarket Wednesday, after the healthcare services company posted better-than-expected second-quarter earnings and raised guidance. Humana had net income of $1.433 billion, or $5.48 a share, for the quarter, up from $1.131 billion, or $4.55 a share, in the year-earlier period. Adjusted per-share earnings came to $8.68, a full dollar ahead of the $7.67 FactSet consensus. Revenue rose to $23.662 billion from $20.645 billion a year ago, also ahead of the $23.447 billion FactSet consensus. Earnings were driven by better-than-expected medical cost trends in the company’s individual Medicare Advantage and Medicaid businesses, which were partially offset by higher-than-expected non-inpatient utilization in group Medicare Advantage, along with lower admin costs, part of which was due to timing. The company raised its full-year adjusted EPS guidance to about $24.75, up 25 cents from prior guidance. The guidance includes an expected 50 cent EPS COVID headwind in the back half of the year. Shares have gained 6% in the year to date, outperforming the S&P 500 , which has fallen 18%.

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