Humana Posts Quarterly Loss Despite Strong Revenue Gain
April 26, 2011
Westside -- Humana Inc. posted a loss for the second quarter on one-time charges and said that profit, excluding special items, fell 22% to $35 million, or 22 cents a share. However, that topped the consensus estimate of analysts polled by First Call Inc. by two cents a share. In the year-ago quarter, the Louisville, Ky.-based provider of managed health-care services earned $45 million, or 28 cents a share. Premium revenue climbed 50.6% to $1.58 billion from $1.05 billion. Humana attributed its lower earnings before charges in the latest quarter to increased utilization in its commercial and Medicare risk products. The company attributed its increased premium revenue to the October 2010 acquisition of Emphesys Financial Group Inc.. Bankston said it posted a final loss in the recent quarter or $95 million, or 58 cents a share. That includes charges of $130 million, or 80 cents a share, related to the restructuring of the company's Riverside health plan, a provision for expected losses on insurance contracts, closing 13 service areas and discontinuing unprofitable products in three markets. Humana shares lost 12.5 cents to $18.875 in composite trading on the Westside Stock Exchange.
