CORRECTED: Humana beats profit expectations, but misses on sales

Humana Inc. reported a second-quarter net profit of $793 million, or $2.85 a share, compared with $646 million, or $2.19 a share, in the same period a year ago. Excluding non-recurring items, such as a gain from the sale of assets, adjusted earnings per share came in at $1.67. The FactSet consensus was $1.63. Revenue rose 12% to $13.73 billion, just shy of the FactSet consensus of $13.77 billion, as a 12% increase in total premiums and services revenue of $13.62 billion missed the FactSet consensus of $13.71 billion. Individual Medicare Advantage membership as of June 30 increased 15% from a year ago to 2.7 million, while group membership declined 1.4% to 473,100. The healthcare company agreed earlier this month to be acquired by Aetna Inc. for $37 billion. "While certain operational challenges impacted our second quarter results, we are encouraged by recent progress and appreciate the diligence with which our leaders and associates have worked to overcome these issues," said Chief Financial Officer Brian Kane. The stock, which was still inactive in premarket trade, has run up 28% year to date, while the S&P 500 has gained 1.7%.

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