By Matt Grossman
Humana Inc. Tuesday posted a third-quarter profit on higher revenue year over year, but said it expects a fourth-quarter loss as utilization levels normalize following lows reached during the coronavirus pandemic.
The Louisville, Ky.-based health-insurance company recorded a third-quarter profit of $10.05 a share, up from $5.14 a share in the same three-month period a year earlier.
On an adjusted basis, Humana's profit was $3.08 a share. Analysts surveyed by FactSet had expected an adjusted profit of $2.81 a share.
Revenue was $20.08 billion, up from $16.24 billion in last year's third quarter. Analysts had expected revenue of $18.62 billion.
Utilization had fallen sharply during the coronavirus pandemic but continued a return to nearly normal levels by the end of the quarter, Humana said, as people sought health care they had postponed. Utilization reached 95% of baseline levels by the end of the quarter, with fully insured members in its group and specialty segment seeking care at higher rates than seniors and Medicaid plan members in Humana's retail segment.
Higher utilization and Covid-19 testing and treatment costs dragged on results in the quarter, Humana said.
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(END) Dow Jones Newswires
November 03, 2020 07:03 ET (12:03 GMT)Copyright (c) 2020 Dow Jones & Company, Inc.