April 30 (Reuters) - Humana beat Wall Street
estimates for first-quarter profit on Wednesday by a large
margin, helped by lower costs and delayed administrative
expenses and incremental investments, sending shares of the
health insurer up 6% in premarket trading.
On an adjusted basis, the company earned a profit of $11.58
per share, above analysts' average estimate of $10.1, according
to data compiled by LSEG.
The company also reaffirmed its 2025 adjusted profit
forecast of about $16.25 per share.
The results were in stark contrast to industry bellwether
UnitedHealth ( UNH ). Earlier this month, UnitedHealth ( UNH ) missed
quarterly estimates for the first time since 2008, in part due
to high spending related to its Medicare Advantage plans,
sparking a brief selloff in the sector.
Humana is a top provider of U.S. government's Medicare
Advantage plans, meant for people aged 65 and older, and those
with disabilities.
Investors will be keenly watching for details on the
company's medical spending.
The insurer's medical cost ratio - the percentage of
premiums spent on medical care - came in at 87.4% for the
quarter, in line with its prior estimate. Analysts on average
had expected a medical cost ratio of 87.5%.
(Reporting by Sneha S K in Bengaluru; Editing by Shinjini
Ganguli)