Shares of Humana (NYSE:HUM) climbed more than 7.5% on Wednesday after the health insurer reported stronger-than-expected first-quarter earnings and raised its fiscal 2013 guidance.
The Louisville, Ky.-based health services provider now anticipates earnings for the period ending Dec. 31 in the range of $8.40 to $8.60 a share, above management's earlier outlook of $7.60 to $7.80 a share and surpassing by the far the Wall Street consensus view of just $7.98.
Shares of Humana soared 7% in recent trade to more than $4.90 on the results.
In its most recent quarter, the health-care company said it earned $2.95 a share, up from a year-earlier $1.49 and beating the Street's view of $1.81 a share. The results benefited from increases in membership and cushioned further by lower benefit expenses.
Despite the cheer on Wall Street, however, the company cautioned of near-term headwinds.