We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Anthem (ANTM) to Report Q3 Earnings: What's in the Cards?
Read MoreHide Full Article
Anthem, Inc. is scheduled to release third-quarter 2021 results on Oct 20, before the opening bell. The company outpaced estimates in three of the trailing four quarters and missed once.
Factors to Note
Improved premiums and growing membership owing to the company’s Medicare and Medicaid businesses coupled with rate increases are likely to have contributed to Anthem’s total revenues in the third quarter. Rise in pharmacy product revenues across the company’s IngenioRx segment might have benefited the to-be-reported quarter’s performance.
The Zacks Consensus Estimate for Anthem’s third-quarter revenues is pegged at $35.3 billion, suggesting growth of 15.3% from the year-ago quarter. The consensus mark for third-quarter premiums stands at $30.1 billion, which indicates an improvement of 14.1% from the prior-year reported figure.
The company’s medical membership is expected to have increased in the to-be-reported quarter, courtesy of its strong Government business. Several contract wins, solid membership gains, and leading market position in Medicaid and Medicare are likely to have driven the business. The company’s Commercial business may have contributed to the overall membership growth in the third quarter.
The consensus mark for medical membership in Government business suggests growth of 16.2% from the year-ago quarter, while the same for Commercial business suggests indicates an improvement of 0.6% year over year.
The Medical Loss Ratio is expected to be high in the to-be-reported quarter due to higher non-COVID utilization, which remained subdued in the prior-year quarter. The metric might have suffered a blow due to the repeal of the health insurance tax in 2021.
Anthem’s expenses are likely to have remained elevated in the to-be-reported quarter due to start-up expenses associated with new contracts and other additional investments in digital innovation and technology advancements.
The Zacks Consensus Estimate for third-quarter earnings is pegged at $6.38 per share, suggests an improvement of 51.9% from the prior-year quarter.
What Our Quantitative Model Unveils
Our proven model predicts an earnings beat for Anthem this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Anthem has an Earnings ESP of +2.23%. This is because the Most Accurate Estimate of $6.52 is pegged higher than the Zacks Consensus Estimate of $6.38. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Some other stocks worth considering from the medical space with a perfect mix of elements to surpass estimates in the upcoming quarterly releases are as follows:
Horizon Therapeutics Public Limited Company has an Earnings ESP of +1.85% and a Zacks Rank #1, currently.
Avantor, Inc. (AVTR - Free Report) has an Earnings ESP of +1.19% and a Zacks Rank of 2, presently.
HCA Healthcare, Inc. (HCA - Free Report) has an Earnings ESP of +6.41% and a Zacks Rank of 3 at present.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Anthem (ANTM) to Report Q3 Earnings: What's in the Cards?
Anthem, Inc. is scheduled to release third-quarter 2021 results on Oct 20, before the opening bell. The company outpaced estimates in three of the trailing four quarters and missed once.
Factors to Note
Improved premiums and growing membership owing to the company’s Medicare and Medicaid businesses coupled with rate increases are likely to have contributed to Anthem’s total revenues in the third quarter. Rise in pharmacy product revenues across the company’s IngenioRx segment might have benefited the to-be-reported quarter’s performance.
The Zacks Consensus Estimate for Anthem’s third-quarter revenues is pegged at $35.3 billion, suggesting growth of 15.3% from the year-ago quarter. The consensus mark for third-quarter premiums stands at $30.1 billion, which indicates an improvement of 14.1% from the prior-year reported figure.
The company’s medical membership is expected to have increased in the to-be-reported quarter, courtesy of its strong Government business. Several contract wins, solid membership gains, and leading market position in Medicaid and Medicare are likely to have driven the business. The company’s Commercial business may have contributed to the overall membership growth in the third quarter.
The consensus mark for medical membership in Government business suggests growth of 16.2% from the year-ago quarter, while the same for Commercial business suggests indicates an improvement of 0.6% year over year.
The Medical Loss Ratio is expected to be high in the to-be-reported quarter due to higher non-COVID utilization, which remained subdued in the prior-year quarter. The metric might have suffered a blow due to the repeal of the health insurance tax in 2021.
Anthem’s expenses are likely to have remained elevated in the to-be-reported quarter due to start-up expenses associated with new contracts and other additional investments in digital innovation and technology advancements.
The Zacks Consensus Estimate for third-quarter earnings is pegged at $6.38 per share, suggests an improvement of 51.9% from the prior-year quarter.
What Our Quantitative Model Unveils
Our proven model predicts an earnings beat for Anthem this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Anthem has an Earnings ESP of +2.23%. This is because the Most Accurate Estimate of $6.52 is pegged higher than the Zacks Consensus Estimate of $6.38. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Anthem, Inc. Price and EPS Surprise
Anthem, Inc. price-eps-surprise | Anthem, Inc. Quote
Zacks Rank: Anthem carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Some other stocks worth considering from the medical space with a perfect mix of elements to surpass estimates in the upcoming quarterly releases are as follows:
Horizon Therapeutics Public Limited Company has an Earnings ESP of +1.85% and a Zacks Rank #1, currently.
Avantor, Inc. (AVTR - Free Report) has an Earnings ESP of +1.19% and a Zacks Rank of 2, presently.
HCA Healthcare, Inc. (HCA - Free Report) has an Earnings ESP of +6.41% and a Zacks Rank of 3 at present.