Humana Inc. (HUM) has reported a 338.98 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $1,115 million, or $7.49 a share in the quarter, compared with $254 million, or $1.68 a share for the same period last year. On an adjusted basis, earnings per share were at $2.75 for the quarter compared with $2.07 in the same period last year.
Revenue during the quarter went down marginally by 0.28 percent to $13,762 million from $13,800 million in the previous year period. Total expenses were 87.37 percent of quarterly revenues, down from 96.04 percent for the same period last year. This has led to an improvement of 867 basis points in operating margin to 12.63 percent.
Operating income for the quarter was $1,738 million, compared with $547 million in the previous year period.
"Our first quarter results strongly reinforce Humana’s strength as an independent company," said Bruce D. Broussard, Humana’s President and Chief Executive Officer. "We believe that concentrating on what we do best helping seniors with chronic conditions ��" solidly positions us to drive multi-year quality Medicare Advantage growth, while leveraging our Healthcare Services businesses to reduce costs and improve the clinical outcomes of this membership. Through integrating our health plans and Healthcare Services businesses more deeply and investing in clinical capabilities and physician partnerships, we’ve made great progress in measurably improving outcomes and reducing costs, while improving the member experience."
For fiscal year 2017, the company expects diluted earnings per share to be $16.91. The company projects diluted earnings per share to be $11.10 on adjusted basis.
Operating cash flow improves significantly
Humana has generated cash of $4,205 million from operating activities during the quarter, up 737.65 percent or $3,703 million, when compared with the last year period.
The company has spent $926 million cash to meet investing activities during the quarter as against cash outgo of $428 million in the last year period.
Cash flow from financing activities was $1,269 million for the quarter, up 713.46 percent or $1,113 million, when compared with the last year period.
Cash and cash equivalents stood at $8,425 million as on Mar. 31, 2017, up 200.79 percent or $5,624 million from $2,801 million on Mar. 31, 2016.
Debt moves up
Humana has witnessed an increase in total debt over the last one year. It stood at $5,428 million as on Mar. 31, 2017, up 24.78 percent or $1,078 million from $4,350 million on Mar. 31, 2016. Total debt was 17.12 percent of total assets as on Mar. 31, 2017, compared with 16.15 percent on Mar. 31, 2016. Debt to equity ratio was at 0.53 as on Mar. 31, 2017, up from 0.41 as on Mar. 31, 2016. Interest coverage ratio improved to 35.47 for the quarter from 11.64 for the same period last year.
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