Humana Raises Guidance on Growth in Medicare Advantage (3)

Humana Inc. raised its profit guidance for the year on Wednesday, bucking a trend in the US health insurance industry after most other companies cut their forecasts in recent months.

The company’s shares rose as much as 8% at the start of regular trading in New York on Wednesday.

Management said medical costs were in line with expectations — which hasn’t been the case for many of the company’s rivals lately — and that it benefited from growth in its Medicare Advantage and pharmacy businesses.

The company raised its full-year adjusted earnings guidance to around $17 per share, up from ...