Humana Inc. (NYSE: HUM) said this morning that its third-quarter net income fell 4.3% but it lifted its earnings outlook for the full year. The health care company also announced a pair of deals and the retirement of its chief executive.
The Louisville, Ky.-based company posted adjusted earnings per share (EPS) of $2.62 on revenues of $9.65 billion for the third quarter. In the same period a year ago, the company reported $2.67 per share on revenues of $9.30 billion. The quarter's results also compare to the consensus estimates for EPS of $2.05 and $9.86 million in revenues.
Humana said that it agreed to pay $11.25 a stake in Metropolitan Health Networks Inc. (NYSE: MDF), a provider of medical care for Medicare, Medicaid and other beneficiaries, mainly in Florida. Humana also will repay all Metropolitan's outstanding debt.
Humana also agreed to acquire Certify Data Systems Inc., a provider of health-information-exchange technology. Terms were not disclosed.
In addition, Humana said that President Bruce Broussard will CEO on Jan. 1. Michael McCallister will retire as CEO and become nonexecutive chairman.
Humana now expects to earn $7.25 to $7.35 per share for the full year, which is up from its previous estimate of $6.90 to $7.10 per share. The Thomson Reuters consensus estimates call for EPS of $7.14 and $39.34 billion in revenues.
Humana shares are inactive in premarket trading but close Friday at $75.21. The 52-week range is $59.92 to $96.46. The mean price target was $98.40 before the report was released.
Filed under: 24/7 Wall St. Wire, Earnings, Healthcare, Management Change, Mergers & Acquisitions Tagged: HUM, MDF