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Humana (HUM) to Post Q3 Earnings: What's in the Cards?

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Humana Inc.’s (HUM - Free Report) third-quarter 2021 earnings results are scheduled to be reported on Nov 3, 2021.

Factors to Impact Q3 Results

The to-be-reported quarter’s earnings results are likely to reflect high revenues. The Zacks Consensus Estimate for third-quarter earnings stands at $4.61, indicating an upside of 49.7% from the prior-year quarter's reported figure.

For the third quarter, management expects a low 20s percentage of its full year 2021 guidance per the last earnings call. The consensus mark for revenues stands at $20.8 billion, implying an upside of 4% from the year-ago quarter’s reported number.

The company’s top line is likely to have witnessed an upside in the third quarter owing to higher premiums and strong Medicaid and Medicare lines of businesses. It is also likely to have gained from state-based membership growth, and a solid contribution from its Retail and Healthcare Services segments.

The consensus mark for total medical membership and total premiums suggests a hike of 1.2% and 5.4% each from the respective year-ago quarter’s reported figures.

However, specialty membership might have partially taken a hit from membership migration. The consensus mark for the same is almost in line with the prior-year quarter’s reported figure.

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, which is not the case here. 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 +0.08%. 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 #4 (Sell).

Highlights of Q2 Earnings and Surprise History

Humana’s second-quarter 2021 operating earnings per share of $6.89 surpassed the Zacks Consensus Estimate by 0.4%. This was on the back of better revenues and a solid contribution from its Retail and Healthcare Services segments. The bottom line, however, declined 45.1% 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 4.16%

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:

ACADIA Pharmaceuticals Inc. (ACAD - Free Report) has an Earnings ESP of +0.87% and is presently Zacks #3 Ranked.

Canopy Growth Corporation (CGC - Free Report) is currently #3 Ranked and has an Earnings ESP of +26.83%.

Zoetis Inc. (ZTS - Free Report) has an Earnings ESP of +5.45% and a Zacks Rank of 3 at present.
 

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