Humana Posts 32% Rise in Earnings

Humana Inc. said its fiscal fourth-quarter earnings rose 32%, beating estimates, as the second-largest operator of Medicare health plans left unprofitable markets and controlled expenses. Net income rose to $35.1 million, or 21 cents a share, from $26.5 million, or 16 cents, a year earlier. Revenue rose 1.7% to $2.62 billion.

Humana Chief Executive Michael McCallister is dropping unprofitable customers in employer health plans and Medicaid, the government insurance plan for the poor.

He also has sought profitable customers at self-insured employers and worked to control costs for customers covered by Medicare, the U.S. health insurance program for the elderly and disabled.

Humana shares fell 79 cents to $12.09 on the NYSE.