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Humana (HUM) to Announce Q2 Earnings: Here's What to Expect

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Humana Inc.’s (HUM - Free Report) second-quarter 2021 results are scheduled to be reported on Jul 28, 2021.

Factors to Impact Q2 Results

The to-be-reported quarter’s earnings results are likely to reflect elevated expenses due to high marketing costs. The Zacks Consensus Estimate for second-quarter earnings sands at $6.86, reflecting a downside of 45.4% from the prior-year quarter's reported figure. For the second quarter, management expects a low 30s percentage of its full year 2021 guidance per the last earnings call.

However, the downside is likely to have been offset by revenues to some extent. The consensus mark for revenues of $20.5 billion hints at a 7.5% rise from the prior-year quarter’s reported number.

The company’s top line is likely to have witnessed an upside in the second quarter owing to higher premiums and its strong Medicaid and Medicare lines of businesses. The company is also likely to have gained from state-based membership growth, and an improved profitability in the Group and Specialty plus Healthcare Services segments. The consensus mark for the company's total medical membership and total premiums suggests a hike of 1.3% and 7.4% each from the respective year-ago quarter’s reported figures.

However, its specialty membership might have partially taken a hit from membership migration. The consensus mark for the same implies a 0.4% decline from the prior-year quarter’s reported figure.

Per the last earnings call, management expected its utilization to continue to rebound on par.

The company is expected to have witnessed an uptick in its telehealth services owing to current demand for the same.

Total investment income for the to-be-reported quarter is expected to have noticed a downtrend due to low investment yield.

What the Quantitative Model States

Our proven model doesn’t predict an earnings beat for Humana this season. The combination of a positive  Earnings ESP  and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP:  Humana has an Earnings ESP of -1.43%. This is because the Most Accurate Estimate is pegged at $6.76, lower than the Zacks Consensus Estimate of $6.86.  You can see  the complete list of today’s Zacks #1 Rank stocks here.

Humana Inc. Price and EPS Surprise

Humana Inc. Price and EPS Surprise

Humana Inc. price-eps-surprise | Humana Inc. Quote

Zacks Rank: Humana currently carries a Zacks Rank #3.

 

Highlights of Q1 Earnings and Surprise History

Humana's first-quarter 2021 operating earnings per share of $7.67 surpassed the Zacks Consensus Estimate by 6.4%. This was on the back of better revenues and a solid contribution by its Retail segment. The bottom line also surged 42% year over year.

The company boasts a stellar earnings record with its bottom line having delivered a positive surprise in all the trailing four quarters, the average being 9.42%

Stocks to Consider

Here are a few stocks worth considering from the medical sector with the perfect mix of elements to beat on earnings this reporting cycle:

AmerisourceBergen Corporation has an Earnings ESP of +2.27% and is presently Zacks #3 Ranked.

The Joint Corp. (JYNT - Free Report) is currently #3 Ranked and has an Earnings ESP of +150.00%.

MEDNAX, Inc. (MD - Free Report) has an Earnings ESP of +8.00% and a Zacks Rank of 2 at present.
 


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