Humana Inc. (NYSE:HUM) Q3 2019 Earnings Conference Call - Final Transcript

Nov 06, 2019 • 09:00 am ET


Humana Inc. (NYSE:HUM) Q3 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen thank you for standing by and welcome to the Humana Third Quarter 2019 Earnings Call. [Operator Instructions]

I would like, to hand the conference over to your speaker today Ms. Amy Smith, Vice President Investor Relations. Thank you. You may begin.

Amy K. Smith

Thank you, and good morning. In a moment Bruce Broussard Humana's President and Chief Executive Officer; and Brian Kane Chief Financial Officer will discuss our third quarter 2019 results and our updated financial outlook for the full year. Following these prepared remarks we will open up the lines for a question-and-answer session with industry analysts. Our Chief Legal Officer, Joe Ventura, will also be joining Bruce, and Brian, for the Q&A session. We encourage the investing public and media to listen to both management's prepared remarks and the related Q&A with analysts. This call is being recorded for replay purposes. That replay will be available on the Investor Relations page of Humana's website later today.

Before we begin our discussion I need to advise call participants of our cautionary statement. Certain of the matters discussed in this conference call are forward-looking and involve a number of risks and uncertainties. Actual results could differ materially. Investors are advised to read the detailed risk factors discussed in our third quarter 2019 earnings press release as well as in our filings with the Securities and Exchange Commission. Today's press release our historical financial news releases and our filings with the SEC are all also available on our Investor Relations site. Call participants should note that today's discussion includes financial measures that are not in accordance with generally accepted accounting principles or GAAP. Management's explanation for the use of these non-GAAP measures and reconciliations of GAAP to non-GAAP financial measures are included in today's press release. Finally, any references to earnings per share or EPS made during this conference call refer to diluted earnings per common share.

With that, I'll turn the call over to Bruce Broussard.

Bruce D. Broussard

Good morning, and thank you for joining us. Today we reported adjusted earnings per share of $5.03 for the third quarter of 2019 and raised our full year 2019 adjusted EPS guidance to approximately $17.75 primarily reflecting improved results in our Retail segment. Our year-to-date results through the third quarter of 2019 including our significant individual Medicare Advantage membership growth now projected to exceed 0.5 million members for the full year demonstrate the value of our products and services the strength of our brand with consumers and our progress in simplifying the health care experience for our members providers broker partners and associates. The management team continues to maintain its focus on operational excellence ensuring our operating results remain consistent despite the potential pressure of significant membership growth. While we celebrate these strong results we also recognize health care will continue to evolve and will require an ongoing balance between improving our productivity while innovating for long-term sustainability specifically by improving the health outcomes of our members and simplifying their health care experience.