Humana Q3 Profit Falls 39 Percent, Lowers Full-Year Outlook

October 27, 2008 6:50 p.m. EST

Louisville, KY (AHN) - Humana Inc. announced Monday third quarter earnings fell 30 percent as the company was hit with a $108.3 million loss from its investment and lending portfolios.

The healthcare provider posted third quarter earnings of $183 million or $1.09 a share, compared with $302.4 million or $1.78 a share in the same period a year earlier.

Excluding the $108.3 million loss, Humana earned $1.49 a share, which was ahead of the $1.47 a share analysts had expected, according to Thomson Reuters.

"As we previously disclosed, a relatively small portion of our investments were in financial institutions that are now in distress. However, that did not impact our operational progress and our financial position remains strong," said CEO Michael McCallister, according to MarketWatch.

Revenue grew to $7.15 billion in the third quarter, up 13 percent from $6.32 billion last year.

Humana did see a pullback in memberships for its Medicare prescription drug plans to roughly 3.1 million from 3.5 million last year.

The company dropped its fourth quarter forecast as they now expect earnings of $1 to $1.10 a share. For the full year 2008, Humana said earnings will be from $3.80 to $3.90 a share. The company is confident about 2009 and expects to earn $5.90 to $6.10 a share next year.