Humana Cuts Guidance, Citing Medicare Advantage Admissions -- Update

By Lisa Beilfuss 

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.

Humana said higher-than-expected Medicare Advantage admissions, among other items, prompted the guidance changes.

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.

Shares of Humana were up 1.3% to $190 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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