Humana’s quarterly profit soared past expectations, largely on the strength of its Medicare Advantage business, which significantly outperformed analysts’ predictions.
The company said on Wednesday that its net income rose to $650 million – $4.46 per share – in the second quarter. The firm earned $3.49 per share, excluding items, blowing past analysts’ projections of $3.08 per share.
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Total revenue was down 3% to $13.53 billion, mostly due to lower Obamacare business revenue. Humana has said that it will exit the Affordable Care Act next year because of losses.
However, the company has raised its full-year earnings forecast saying it now expects full-year adjusted earnings to hit $11.50 per share. That’s up from its original projection of $11.10.
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