Humana Inc. (NYSE: HUM) today reported diluted earnings per common share (EPS) for the quarter ended March 31, 2014 (1Q14) of $2.35, compared to diluted earnings per common share (EPS) of $2.95 for the quarter ended March 31, 2013 (1Q13). Results from 1Q13 included $0.41 per diluted common share of benefit from the settlement of contract claims with the Department of Defense related to previously-disclosed litigation and the absence of the impact of sequestration for the company's Medicare business.
The company reaffirmed its estimate for EPS for the year ending December 31, 2014 (FY14) to be in the range of $7.25 to $7.75. The company's 2014 EPS estimate now reflects a continuing expectation of improved performance from the company's Medicare Advantage, commercial group and government businesses, higher than expected specialty drug costs for treatment of Hepatitis C, additional planned investments in clinical initiatives and lower investment spending and startup expenses for the company's health care exchange business.
"Our first quarter results reflect our success in growing membership and timely engagement with our members, assisting them with their health conditions, especially chronic conditions. Our progress with our clinical programs has provided members stable benefits and improving quality ratings," said Bruce D. Broussard, President and Chief Executive Officer of Humana. "We expect the strength of our integrated care delivery strategy combined with expanding enrollment opportunities, especially in our newer offerings, to position the company for further growth in a challenging Medicare funding environment."
Share Repurchases
During 1Q14, the company executed share repurchases of $11 million, or 100,000 of its outstanding shares, at an average price of $113.44 per share under a previous share repurchase authorization. In April 2014, the Board of Directors replaced its previous share repurchase authorization (of which approximately $569 million remained unused) with a new $1 billion repurchase authorization with an expiration date of June 30, 2016.
Humana's full detailed earnings press release has been posted to the company's Investor Relations site and may be accessed ats website).
Conference Call & Virtual Slide Presentation
Humana will host a conference call, as well as a virtual slide presentation, at 9:00 a.m. eastern time today to discuss its financial results for the quarter and the company's expectations for future earnings. A live virtual presentation (audio with slides) may be accessed via Humana's Investor Relations page at www.humana.com. The company suggests web participants sign on at least 15 minutes in advance of the call. The company also suggests web participants visit the site well in advance of the call to run a system test and to download any free software needed to view the presentation.
All parties interested in the audio-only portion of the conference call are invited to dial 888-625-7430. No password is required. The company suggests participants dial in at least ten minutes in advance of the call. For those unable to participate in the live event, the virtual presentation archive may be accessed via the Historical Webcasts & Presentations section of the Investor Relations page at www.humana.com.
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