Health insurer Humana Inc. (HUM: Quote) reported Wednesday a lower profit in its third quarter reflecting higher expenses, despite growth in revenues. Quarterly earnings per share, however, topped analysts' estimates, so were revenues. Further, the company backed its fiscal 2013 earnings forecast below view, and provided forecast for fiscal 2014.<br /><br />Further, the company said it elected Steven McCulley as interim chief financial officer, effective January 1, 2014. McCulley, currently vice president, controller and principal accounting officer, succeeds James Bloem, who announced his retirement effective December 31. Bloem is currently the company's Senior Vice President, Chief Financial Officer and Treasurer.<br /><br />Humana noted that McCulley will assume all the responsibilities currently held by Bloem until a Chief Financial Officer has been elected. Bloem was also elected as Advisor to the Office of Chief Financial Officer, effective January 1, 2014.<br /><br />For the third quarter, Humana's net income declined 13.6 percent to $368 million from last year's $426 million. Earnings per share was $2.31, 11.8 percent lower than prior year's $2.62.<br /><br />On average, 18 analysts polled by Thomson Reuters expected earnings of $2.15 per share for the quarter. Analysts' estimates typically exclude one-time items.<br /><br />Income from operations declined 11.4 percent to $621 million as total operating expenses increased 8.4 percent year-over-year to $9.70 billion.<br /><br />According to the company, improved results for its employer group and healthcare services segments were more than offset by lower results for the retail segment and other businesses.<br /><br />The firm's total revenues grew 6.9 percent to $10.32 billion in the quarter from $9.65 billion reported a year back. Ten analysts estimated revenues of $10.30 billion for the quarter.<br /><br />In the quarter, premiums increased 6.7 percent year-over-year to $9.70 billion, and services revenue grew 13.1 percent. Retail segment's premiums and services revenue were benefited by a 6.9 percent increase in average individual Medicare Advantage membership, partially offset by lower per-member premiums.<br /><br />A 25.6 percent growth in Healthcare Services' revenues reflected growth in the company's pharmacy solutions and provider services businesses and its 2012 acquisition of Metropolitan.<br /><br /><br />In the quarter, retail segment's individual Medicare Advantage membership grew 6.9 percent to 2.04 million as of September 30, primarily due to a successful enrollment season associated with the 2013 plan year. Membership in the company's individual stand-alone Prescription Drug Plans grew 7.7 percent.<br /><br />Looking ahead for 2013, Humana continues to expect earnings per share in the range of $8.65 to $8.75, whereas 14 analysts project annual earnings of $8.79 per share. Consolidated revenues are projected to be $40.75 billion to $41.25 billion, while analysts estimate $41.36 billion.<br /><br />Further, for fiscal 2014, Humana sees earnings per share between $7.25 and $7.75, including $0.50 to $0.90 per share in investment spending and startup expenses for the company's newer state-based contracts and health care exchange businesses. Analysts anticipate earnings of $8.69 per share for 2014.<br /><br />The company said its consolidated revenues are expected to exceed $43 billion in 2014, and be between $43.5 billion to $46.5 billion, while analysts projects revenues of $43.16 billion. Medicare Advantage membership is projected to grow in 2014 by 260,000 to 305,000.<br /><br />Humana shares closed Tuesday's trading at $93.95, down $0.18 or 0.19 percent.<br /><br />In pre-market activity, shares are currently trading at $93.50, down $0.45 or 0.48 percent.