Humana rises on earnings beat, cheery outlook

Humana rose more than 8% in premarket trading after it reported earnings that beat estimates and raised its outlook for the year, making it an outlier among its health insurance peers.

The company reported adjusted earnings per share of $6.27, beating analysts' estimates of $5.92, per FactSet. Its spending on medical costs was in line with expectations, while most of its peers are reporting costs that exceed Wall Street's forecasts.

Humana raised its full-year adjusted earnings guidance to “approximately $17.00,” up from its previous forecast of “approximately $16.25.” The Street is currently penciling in $16.36 adjusted earnings per share for the year.

The company gets most of its revenue from selling Medicare Advantage plans, which is government-sponsored insurance for the elderly. It said it expects to sell more plans this year than previously anticipated.