Humana Q4 Earnings Down, Sees FY16 Adj. EPS Above View

(RTTNews) - Humana Inc. (HUM) Wednesday announced a decline in fourth quarter pre-tax income to $246 million from $287 million in the previous year. Earnings per share declined to $0.67 from $0.94 last year. On an adjusted basis, earnings were $1.45 per share.

On average, 19 analysts polled by Thomson Reuters expected the company to earn $1.45 per share. Analysts estimates usually exclude special items.

Looking ahead, the company expects full year 2016 earnings per share of $8.53 and adjusted earnings per share of $8.85. Wall Street expects 8.73 per share.

For the first quarter, adjusted earnings is projected to be at least $1.80 per share. Street estimates is $2.50 per share.

The company said it expects meaningful margin improvement in its core individual Medicare Advantage business in 2016 and a growth in both revenues and earnings per share in 2017 and beyond.

Further, Humana said it continues to expect the transaction in which Aetna will acquire humana shares to close in the second half of 2016.