Humana Reports Messy 4Q According To Citigroup

Citigroup has published a research report on Humana Inc. HUM after the company reported a "messy" 4Q. In the report, Citigroup writes "Earnings in the fourth quarter were $0.63 per share, $0.18 below consensus, mainly because of a $139 million ($0.51 per share) reserve charge related to a long-term care product Humana no longer sells. In addition, Humana made $35 million in charitable contributions ($0.13 per share), incurred $37 million ($0.13 per share) in costs associated with the launch of the Wal-Mart PDP, $40 million incremental costs associated with Medicare open enrollment ($0.15 per share), and $15 million ($0.05 per share) in Concentra transaction costs. In total, the one-time items amounted to $1.02 for the quarter, although they were likely partially offset by some one-time positive development." Citigroup maintains its Buy rating and $65 price target. Humana closed Friday at $59.24.