Thursday, October 19, 2006

(HUM) - Humana, Inc. - Two analysts have raised their estimates for this year, while three have done so for next year

Humana has met or exceeded estimates in five out of the past six quarters. The latest quarter registered a 39% positive surprise. Two analysts have raised their estimates for this year, while three have done so for next year. 2007 estimates have jumped 3.6% to $3.45 per share over the past 90 days.

Full Analysis

Humana, Inc. is one of the nation's largest health services companies, with about seven million members located in 23 states in the U.S. and Puerto Rico. The company's main product is its Health Maintenance Organization (HMO).

It also offers Preferred Provider Organization (PPO) products, Administrative Service Only (ASO) products, and specialty products, which include dental, group life, and short-term disability.

The company operates two business segments: Commercial and Government. The Commercial segment, catering to employer groups and individuals, includes three lines of business: fully insured medical, ASO, and specialty.

The Government segment serves members enrolled in government-aided programs and has three product offerings: Medicare Advantage (formerly Medicare+Choice), Medicaid, and TRICARE (a medical program under the Department of Defense).

Humana continues to enhance and expand its consumer directed commercial product portfolio and expand its business platform. The company's new product design has in recent years focused on meeting the demand for greater self determination by employers and members for varying levels of copayments, deductibles, coinsurance, benefits levels and price.

The company's acquisition of CarePlus Health Plan, a Medicare Advantage (MA) HMO based in South Florida, or $408M will add another 50,000 members. The additional members added approximately 30% to Humana's South Florida Medicare membership for a total of 180,000 members, enhancing operations in the key state of Florida.

HUM has met or exceeded estimates in five out of the past six quarters. The latest quarter registered a 39% positive surprise. Two analysts have raised their estimates for this year, while three have done so for next year. 2007 estimates have jumped 3.6% to $3.45 per share over the past 90 days.

Content Courtesy: Zacks Investment Research

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