On Wednesday, Humana Inc. (NYSE: HUM) announced its financial results for the third quarter of 2017. With earnings beating estimates but revenues missing estimates, shares of the company increased 2% to $263 per share before markets opened today.
For the third quarter, net income was up 11% to $499 million. Adjusted earnings per share was $3.39, beating analysts’ estimates of $3.27 per share.
Revenues for the third quarter were $13.18 billion, which missed estimates of $13.29 billion. Revenues of the Retail segment increased 2% to $11.05 billion for the third quarter, motivated by higher revenues from Medicare Advantage business. In addition, revenues from the Group and Specialty segment increased 1% to $1.85 billion, which was mainly due to increased group fully insured per-member premiums.
“Our 2017 financial performance and improved Star ratings that were announced in October reflect the solid execution of our strategy and the effectiveness of our integrated care delivery model,” Bruce D. Broussard, the President and Chief Executive Officer of Humana, said in the statement on Wednesday.
“As a result of our over performance in 2017 and other cost savings measures, we made targeted investments in our product design, clinical programs and operating processes, which enabled us to maintain stable plan benefits, simplify the member experience and improve clinical outcomes,” he said.