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Humana makes the 3Q grade
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October 29, 1998: 8:21 a.m. ET
HMO meets Street forecast despite pulling plug on United HealthCare merger
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NEW YORK (CNNfn) - Managed health-care provider Humana Inc. posted third-quarter earnings Thursday that showed few symptoms of distress and met Wall Street expectations.
Humana reported net income of $54 million, or 32 cents per share, up 19 percent from the year ago's $44 million, or 27 cents per share, and exactly in line with First Call forecasts.
As previously announced, the HMO took a special $132 million pre-tax charge in the period to cover Humana's abortive merger with United HealthCare (UNH). Taking the charge into account, Humana reported a loss of $30 million, or 18 cents per share.
Revenue increased to $2.42 billion from $1.93 billion in the applicable year-ago period.
The company attributed the higher profits to tighter efficiency margins and cost savings resulting from its 1997 acquisitions of Physician Corp. of America and ChoiceCare Corp.
"Managed care is a good business, a business that can and does have a meaningful, beneficial impact on how health care is delivered in this country," President and CEO Gregory N. Wolf said.
In the year to date, Humana earned $158 million, or 93 cents per diluted share, a significant improvement from $125 million, or 76 cents per share, a year earlier.
On Wednesday, investors awaiting the earnings release pushed Humana stock (HUM) up 3/8 to close at 16-3/8. 
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Humana Inc.
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