Humana up 7% premarket on Q2 beat; raised 2019 guidance

Humana (HUM) Q2 results: Revenues: $16,245M (+13.9%); Premiums: $15,776M (+15.0%); Services: $355M (-7.1%); Investment income: $114M (-30.5%).

Net Income: $940M; EPS: $6.94; Non-GAAP EPS: $6.05 (+52.8%).

Q2 Benefit ratio was 84.4%; Retail benefit ratio of 85.2%; Group and Specialty benefit ratio of 86.3%.

Individual Medicare Advantage membership was 3,484,500 (+15% Y/Y).

Group Medicare Advantage membership was 519,100 (+5% Y/Y).

2019 Guidance: Total Revenues: $64.2B – 64.8B from $63.3B – 63.9; GAAP EPS: ~$17.97 from ~$16.63 – 16.88; Non-GAAP EPS: ~$17.60 from ~$17.25 – 17.50; Individual Medicare Advantage: up 480K – 500K from 415K – 440K;  Group Medicare Advantage: up ~30,000 (unch); Retail Benefit Ratio: 86.4% – 86.8% from 86.4% – 87.4%; Group and Specialty segment Benefit Ratio: 82.4% – 82.8% from 81.3% – 81.8%.

Shares are up 7% premarket.

Previously: Humana EPS beats by $0.78, beats on revenue (July 31)

https://seekingalpha.com/news/3484209-humana-7-percent-premarket-q2-beat-raised-2019-guidance