LOUISVILLE, Ky.--(BUSINESS WIRE)--Humana Inc. (NYSE: HUM - News) today reported financial results for the quarter ended March 31, 2008 (1Q08) including diluted earnings per common share (EPS) of $0.47, ahead of management’s previous guidance for EPS of $0.44 to $0.46, primarily due to a lower-than-anticipated effective tax rate. The company earned $0.42 per share for the quarter ended March 31, 2007 (1Q07).The company also announced that it had raised its EPS projection for the year ending December 31, 2008 to a range of $4.10 to $4.35 to reflect a lower diluted share count and effective tax rate for the full year.
“Our Medicare Advantage and Commercial progress was particularly strong in the first quarter,” said Michael B. McCallister, the company's president and chief executive officer. “Our first quarter earnings, and our success in achieving targeted Medicare Advantage membership gains year to date, give us confidence that we’ll continue to see solid improvement in all non-Prescription Drug Plan (PDP) lines of business through 2008 and beyond. We expect to return our stand-alone PDPs to profitability in 2009.”
Revenues – 1Q08 consolidated revenues rose 12 percent to $6.96 billion from $6.20 billion in 1Q07, with total premium and administrative services fees also up 12 percent compared to the prior year’s quarter. This year-over-year increase was primarily driven by higher average Medicare Advantage membership in 1Q08 versus 1Q07.
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