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Healthcare Stocks to Watch for Earnings on Oct 31: INCR, THC
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We now have Q3 results from 198 S&P 500 members that combined account for 48.9% of the index’s total market capitalization as per the Earnings Preview article. Total earnings for these companies are up 3.2% from the same period last year on 1.9% higher revenues, with 73.7% beating earnings per share (EPS) estimates and 61.1% coming ahead of top-line expectations.
Healthcare comes under the Medical sector and is one of the seven sectors in the S&P 500 group. So far, 32.1% of the total Medical sector companies have reported third-quarter results. The sector is expected to deliver 4.4% earnings growth on 7.4% higher revenues this reporting cycle. This compares favorably with the projected 1.4% earnings and revenue growth for the S&P 500 index.
Healthcare is part of the broader medical sector which includes diversified industries like health maintenance organizations (HMOs) popularly known as health insurers, clinical, laboratories and diagnostics research, medical equipment, hospitals, telehealth services and more.
In the HMO subsector, factors like disappointing public exchange business, increasing medical ratio and the well-performing government business will majorly affect earnings of the players. Most insurers incurred losses from this business in the first half of the year and the trend is unlikely to reverse this time. Although insurance companies had expected better profitability in 2016 after making meager profits in 2015, the individual exchange business disappointed the firms. Major players incurred losses in this business and are now reducing their participation on the exchanges by exiting unprofitable markets.
Nevertheless, HMO industry players are likely to have witnessed an increase in premium from government businesses – Medicare, Medicare Advantage and Medicaid. A surge in the baby boomer population has led to higher demand for these policies.
In addition, a higher number of enrollees in the Medicare, Medicaid and Medicare Advantage businesses is expected to have driven membership growth in the third quarter. However, this upside might have been partly offset by a decline in membership on the public exchange business.
Another subsectoor providing biopharmaceutical development services is expected to see increased top-line growth as pharmaceutical companies continue to increasingly outsource clinical development and commercialization support activities. Moreover, increased use of technology and data assets on a global scale will drive performance of the players in this sub-segment.
Here, we take a sneak peek at two healthcare stocks scheduled to report their third-quarter figures on Oct 31:
Tenet Healthcare Corp. (THC - Free Report) together with its subsidiaries, primarily operates acute care hospitals and related healthcare facilities. The company operates through three segments: Hospital Operations and Other, Ambulatory Care, and Conifer. Last quarter, Tenet Healthcare missed the Zacks Consensus Estimate by 22.5%. It has an Earnings ESP of +26.32% as the Most Accurate Estimate stands at 24 cents per share, higher than the Zacks Consensus Estimate of 19 cents per share. The company carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
With respect to the surprise trend, Tenet Healthcare surpassed expectations in two of the last four quarters, with an average beat of 4.16%.
INC Research Holdings, Inc. (INCR - Free Report) is a contract research organization that provides various clinical development services for the biopharmaceutical and medical device industries. The company offers a range of services focusing on Phase I to Phase IV clinical trials in the areas of central nervous system, oncology, and other complex diseases. Last quarter, INC Research beat the Zacks Consensus Estimate by 7.55%. It has a Zacks Rank #2 and an Earnings ESP of 0.00%. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
INC Research surpassed expectations in each of the last four quarters, with an average beat of 17.36%.
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Healthcare Stocks to Watch for Earnings on Oct 31: INCR, THC
We now have Q3 results from 198 S&P 500 members that combined account for 48.9% of the index’s total market capitalization as per the Earnings Preview article. Total earnings for these companies are up 3.2% from the same period last year on 1.9% higher revenues, with 73.7% beating earnings per share (EPS) estimates and 61.1% coming ahead of top-line expectations.
Healthcare comes under the Medical sector and is one of the seven sectors in the S&P 500 group. So far, 32.1% of the total Medical sector companies have reported third-quarter results. The sector is expected to deliver 4.4% earnings growth on 7.4% higher revenues this reporting cycle. This compares favorably with the projected 1.4% earnings and revenue growth for the S&P 500 index.
Healthcare is part of the broader medical sector which includes diversified industries like health maintenance organizations (HMOs) popularly known as health insurers, clinical, laboratories and diagnostics research, medical equipment, hospitals, telehealth services and more.
In the HMO subsector, factors like disappointing public exchange business, increasing medical ratio and the well-performing government business will majorly affect earnings of the players. Most insurers incurred losses from this business in the first half of the year and the trend is unlikely to reverse this time. Although insurance companies had expected better profitability in 2016 after making meager profits in 2015, the individual exchange business disappointed the firms. Major players incurred losses in this business and are now reducing their participation on the exchanges by exiting unprofitable markets.
Nevertheless, HMO industry players are likely to have witnessed an increase in premium from government businesses – Medicare, Medicare Advantage and Medicaid. A surge in the baby boomer population has led to higher demand for these policies.
In addition, a higher number of enrollees in the Medicare, Medicaid and Medicare Advantage businesses is expected to have driven membership growth in the third quarter. However, this upside might have been partly offset by a decline in membership on the public exchange business.
Another subsectoor providing biopharmaceutical development services is expected to see increased top-line growth as pharmaceutical companies continue to increasingly outsource clinical development and commercialization support activities. Moreover, increased use of technology and data assets on a global scale will drive performance of the players in this sub-segment.
Here, we take a sneak peek at two healthcare stocks scheduled to report their third-quarter figures on Oct 31:
Tenet Healthcare Corp. (THC - Free Report) together with its subsidiaries, primarily operates acute care hospitals and related healthcare facilities. The company operates through three segments: Hospital Operations and Other, Ambulatory Care, and Conifer. Last quarter, Tenet Healthcare missed the Zacks Consensus Estimate by 22.5%. It has an Earnings ESP of +26.32% as the Most Accurate Estimate stands at 24 cents per share, higher than the Zacks Consensus Estimate of 19 cents per share. The company carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
With respect to the surprise trend, Tenet Healthcare surpassed expectations in two of the last four quarters, with an average beat of 4.16%.
TENET HEALTH Price and EPS Surprise
TENET HEALTH Price and EPS Surprise | TENET HEALTH Quote
INC Research Holdings, Inc. (INCR - Free Report) is a contract research organization that provides various clinical development services for the biopharmaceutical and medical device industries. The company offers a range of services focusing on Phase I to Phase IV clinical trials in the areas of central nervous system, oncology, and other complex diseases. Last quarter, INC Research beat the Zacks Consensus Estimate by 7.55%. It has a Zacks Rank #2 and an Earnings ESP of 0.00%. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
INC Research surpassed expectations in each of the last four quarters, with an average beat of 17.36%.
INC RESRCH HLDG Price and EPS Surprise
INC RESRCH HLDG Price and EPS Surprise | INC RESRCH HLDG Quote
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