Humana Cuts View After Aetna Deal Announcement

Humana Inc. on Monday cut its adjusted earnings outlook for the full year and issued downbeat guidance for the current quarter on the heels of its $34.1 billion tie-up announcement with Aetna Inc. on Friday.

The insurer, which agreed to be bought by rival Aetna for about $230 a share, said it now expects to earn an adjusted per-share profit of $7.75, down sharply from its previous estimate of $8.50 to $9. Adjusted earnings forecasts typically exclude one-time costs.

For the quarter ended in June, Humana predicted earnings of $1.60 to $1.65 a share, short of the $2.36 anticipated by analysts polled by Thomson Reuters.

The Louisville company disclosed the updated guidance in a regulatory filing ahead of a conference call to discuss the Aetna tie-up.

A representative for Humana couldn't be immediately reached for comment.

Shares of Humana were up 2.1% to $191.45 in premarket trading, well below the deal's offer price when it was announced.

Write to Lisa Beilfuss at [e-mail]

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