Humana Reports 4Q EPS Below Consensus

Deutsche Bank has published a research report on Humana, Inc. HUM after the company reported 4Q EPS results that came in below consensus estimates. In the report, Deutsche Bank writes "The 4Q EPS includes approx $1.02 of primarily one-time expenses, including $0.52 of reserve strengthening for the closed long-term care (LTC) book, which we were not expecting. However, HUM noted that higher than expected core business performance added $0.61 to EPS relative to guidance. The 4Q results were noisy with a headline miss although core ops were on track. HUM boosted 2011 guidance on positive Medicare and Commercial trends." Deutsche Bank maintains its Hold rating and $56 price target. Humana closed Friday at $60.08.