Humana (HUM) Tops Q1 EPS by 26c
Humana (NYSE: HUM) reported Q1 EPS of $2.75, $0.26 better than the analyst estimate of $2.49.
2017 Earnings Guidance
Humana today reaffirmed its recently raised GAAP and Adjusted EPS guidance for the year ending December 31, 2017 (FY17).
A reconciliation of GAAP to Adjusted EPS for the company’s FY17 projections as well as comparable numbers for the year ended December 31, 2016 (FY16) is shown below:
| Diluted earnings per common share | FY17Guidance (c) | FY16(d) | |||||||
| GAAP | At least $16.91 | $ | 4.07 | ||||||
Net (gain) expenses associated with the terminated merger agreement (for FY17, primarily the break-up fee) | (4.36 | ) | 0.64 | ||||||
| Amortization of identifiable intangibles | 0.31 | 0.32 | |||||||
Beneficial effect of lower effective tax rate in light of pricing and benefit design assumptions associated with the 2017 temporary suspension of the non-deductible health insurance industry fee; excludes Individual Commercial business impact | (2.15 | ) | - | ||||||
Reserve strengthening for the company’s non-strategic closed block of long-term care insurance business (e) | - | 2.11 | |||||||
Guaranty fund assessment expense to support the policyholder obligations of Penn Treaty (an unaffiliated long-term care insurance company) | 0.24 | - | |||||||
| Operating losses associated with the Individual Commercial business given the company’s exit on January 1, 2018 as previously disclosed | 0.15 | 3.78 | |||||||
| Adjusted (non-GAAP) – FY17 projected; FY16 as recast | |||||||||
For earnings history and earnings-related data on Humana (HUM) click here.