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Humana Q3 Preview: Can The Earnings Streak Continue?
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The Zacks Medical Sector has modestly outperformed the S&P 500 in 2022, down roughly 18%.
A giant in the realm, Humana (HUM - Free Report) , is on deck to unveil quarterly earnings on November 2nd, before the market open.
Humana is a health care plan provider in the United States, providing health insurance benefits under Health Maintenance Organization, Private Fee-For-Service, and Preferred Provider Organization plans.
Currently, the company sports a favorable Zacks Rank #2 (Buy) with an overall VGM Score of a C.
How does everything shape up heading into the print? Let’s take a closer look.
Share Performance & Valuation
Humana shares have been a bright spot in an otherwise dim market in 2022, up more than 20% and crushing the S&P 500’s performance.
Image Source: Zacks Investment Research
Over the last three months, HUM shares have continued on a market-beating trajectory, up more than 15% and again crushing the S&P 500.
Image Source: Zacks Investment Research
HUM shares currently trade at a 22.3X forward earnings multiple, nearly exactly in line with its Zacks Medical sector average and above its five-year median of 19.7X by a fair margin.
The company sports a Style Score of a B for Value.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have been bullish in their earnings outlook, with four positive earnings estimate revisions hitting the tape over the last several months. The Zacks Consensus EPS Estimate of $6.25 suggests a Y/Y earnings uptick of nearly 30%.
Image Source: Zacks Investment Research
HUM’s top-line is also in solid standing; the Zacks Consensus Sales Estimate of $22.8 billion indicates a Y/Y improvement of more than 10%.
Quarterly Performance & Market Reactions
Humana’s earnings track record is more than impressive – the company hasn’t fallen short of EPS expectations in any quarter dating back to 2016. In its latest release, the medical giant registered a sizable 13% EPS surprise.
Sales results have also been consistently strong, with Humana surpassing revenue estimates in seven of its last ten quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Additionally, it’s worth noting that the market has had favorable reactions as of late to the company’s results, with shares moving upward following two of its last three releases.
Putting Everything Together
HUM shares have been a great place to park cash in 2022, outperforming the general market across several timeframes.
The company’s forward price-to-sales ratio sits above its five-year median and nearly in line with its Zacks Medical sector average.
Analysts have upped their earnings outlook over the last several months, with estimates indicating solid Y/Y growth in earnings and revenue.
The company has been the definition of consistency within its quarterly results, repeatedly beating expectations.
Heading into the release, Humana (HUM - Free Report) sports a Zacks Rank #2 (Buy) with an Earnings ESP Score of 1.3%.
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Humana Q3 Preview: Can The Earnings Streak Continue?
The Zacks Medical Sector has modestly outperformed the S&P 500 in 2022, down roughly 18%.
A giant in the realm, Humana (HUM - Free Report) , is on deck to unveil quarterly earnings on November 2nd, before the market open.
Humana is a health care plan provider in the United States, providing health insurance benefits under Health Maintenance Organization, Private Fee-For-Service, and Preferred Provider Organization plans.
Currently, the company sports a favorable Zacks Rank #2 (Buy) with an overall VGM Score of a C.
How does everything shape up heading into the print? Let’s take a closer look.
Share Performance & Valuation
Humana shares have been a bright spot in an otherwise dim market in 2022, up more than 20% and crushing the S&P 500’s performance.
Image Source: Zacks Investment Research
Over the last three months, HUM shares have continued on a market-beating trajectory, up more than 15% and again crushing the S&P 500.
Image Source: Zacks Investment Research
HUM shares currently trade at a 22.3X forward earnings multiple, nearly exactly in line with its Zacks Medical sector average and above its five-year median of 19.7X by a fair margin.
The company sports a Style Score of a B for Value.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have been bullish in their earnings outlook, with four positive earnings estimate revisions hitting the tape over the last several months. The Zacks Consensus EPS Estimate of $6.25 suggests a Y/Y earnings uptick of nearly 30%.
Image Source: Zacks Investment Research
HUM’s top-line is also in solid standing; the Zacks Consensus Sales Estimate of $22.8 billion indicates a Y/Y improvement of more than 10%.
Quarterly Performance & Market Reactions
Humana’s earnings track record is more than impressive – the company hasn’t fallen short of EPS expectations in any quarter dating back to 2016. In its latest release, the medical giant registered a sizable 13% EPS surprise.
Sales results have also been consistently strong, with Humana surpassing revenue estimates in seven of its last ten quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Additionally, it’s worth noting that the market has had favorable reactions as of late to the company’s results, with shares moving upward following two of its last three releases.
Putting Everything Together
HUM shares have been a great place to park cash in 2022, outperforming the general market across several timeframes.
The company’s forward price-to-sales ratio sits above its five-year median and nearly in line with its Zacks Medical sector average.
Analysts have upped their earnings outlook over the last several months, with estimates indicating solid Y/Y growth in earnings and revenue.
The company has been the definition of consistency within its quarterly results, repeatedly beating expectations.
Heading into the release, Humana (HUM - Free Report) sports a Zacks Rank #2 (Buy) with an Earnings ESP Score of 1.3%.