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Humana's (HUM) Q2 Earnings Beat, Revenues Miss

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Humana Inc. (HUM - Free Report) is one of the largest health care plan providers in the United States.

At present Humana’s core operations include the provision of health insurance benefits under Health Maintenance Organization (HMO), Private Fee-For-Service (PFFS), and Preferred Provider Organization (PPO) plans.

The company also provides other benefits with specialty products including dental, vision, and other supplementary benefits. Humana capitalizes on its established Accountable Care arrangement to provide its Medicare Advantage (MA) members with quality care at an affordable price.   

Currently, Humana has a Zacks Rank #4 (Sell), but that could definitely change following its earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Humana surpassed our earnings estimate. Our consensus called for EPS of $3.08, and the company reported EPS of $3.49.

Humana Inc. Price and EPS Surprise

Revenue: Revenues miss our estimates. Our consensus called for revenues of $13.612 billion, and the company reported revenues of $13.29 billion.

Key Stats to Note: Benefit ratio deteriorated 90 basis points to 83.4% in the quarter. Operating cost ratio improved 130 basis points to 10.7%.

Cash outflows from operations totaled $83 million, which compared favorably to cash outflow from operations of $296 million in the prior year quarter.

Check back later for our full write up on this HUM earnings report later!

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