Managed care company Humana (HUM) rose 7% in morning trading after the company beat earnings expectations and raised its full-year outlook. The company also said next year’s earnings would come in slightly below this year’s projections, but Humana is known for conservative guidance and the dip isn’t phasing the Street.
The company posted $2.54 in EPS, 52 cents ahead of analysts’ expectations as surveyed by Thomson Reuters. It raised its full year EPS estimate to a range of $8.35 to $8.40, from its previous estimate of $7.50 to $7.60. For 2012, the company expects EPS in the range of $7.40 to $7.60.
Like Aetna (AET), Humana benefited from lower benefit costs, as its medical benefit ratio fell to 80.7% from 81.6%.
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