Humana stock sinks after insurer keeps full-year profit forecast despite strong Q1

The health insurer's first-quarter benefit ratio came in better than expected, but investors wanted a guidance raise

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Humana $HUM reported first-quarter adjusted earnings per share of $10.31, topping analyst estimates of $10.19, according to Reuters. Despite the beat, Humana stock fell as much as 7% in premarket trading before paring losses.

At 89.4%, Humana's insurance segment benefit ratio — which measures what portion of premium revenue goes toward medical care — edged out the company's own target of just under 90%. The company noted that trends in both medical and pharmacy costs were coming in somewhat more favorably than it had anticipated.

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