Humana Stock Dives On Profit Forecast

Shares of Humana Inc. stock took a dive Friday after the managed health care company said its second-quarter profits will be lower than expected because of unusually high use of medical services.

Humana said it expects to earn between 18 and 22 cents per share in the quarter ending June 30, compared with 28 cents a year earlier.

An earlier average of analysts’ projections for the company’s second quarter was 33 cents a share.

Trading of Humana’s stock was delayed at the start of the day Friday because of heavy sell orders. Humana shares fell $4.12-1/2, or 18 percent, to close at $19 on the New York Stock Exchange

Shares of competitors were pulled lower by the news. PacifiCare lost $4.75 to $76. United Healthcare lost $2.25 to $52.75.

Humana, like these other operators of health maintenance organizations, has grown rapidly as employers increasingly choose this form of health benefits and abandon higher-cost traditional health insurance.