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.
Humana (HUM) Likely to Top Q3 Earnings; Stock to Gain?
Read MoreHide Full Article
We expect Humana Inc. (HUM - Free Report) to beat expectations when it reports third-quarter results on Nov 4, before the market opens.
Why a Likely Positive Surprise?
Our proven model shows that Humana has the right combination of two key ingredients to beat estimates.
Zacks ESP:Earnings ESP of the company +2.94%. This is because the Most Accurate estimate is pegged at $3.15, while the Zacks Consensus Estimate stands at $3.06. A positive ESP is a meaningful indicator of a likely positive earnings surprise for the company. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: Humana carries a Zacks Rank #2 (Buy). Note that stocks with a Zacks Rank of #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of beating on earnings.
Conversely, the Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement.
What is Driving the Better-Than-Expected Earning
Humana’s Individual Medicare Advantage and Healthcare Services businesses likely have delivered solid performances in the to be reported quarter. The Group Medicare Advantage Business is also expected to come out with strong results.
Humana’s Medicare business is expected to drive earnings through growth in stand-alone PDP (Prescription Drug Plans) contracts. Management expects continuous increase in the PDP membership
Humana’s Individual commercial membership is likely to increase despite management’s earlier expectation of membership reduction due to the rise in premiums and benefit redesigns since the beginning of 2016.
The persistent underperformance by Humana’s public exchange business over the last few quarters might adversely affect margins by limiting the sale of Affordable Care Act (ACA) plans on public exchanges.
Humana is likely to witness an increase in operating expenses in the third quarter due to higher benefit expenses as well as depreciation and amortization costs. This might put pressure on margin.
Here are some companies from the Medical sector that you may want to consider as these have the right combination of elements to post an earnings beat this quarter:
Aquinox Pharmaceuticals Inc. which is expected to report third-quarter earnings results on Nov 8, has an Earnings ESP of +3.33% and a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
AveXis, Inc. has an Earnings ESP of +11.43% and a Zacks Rank #2 (Buy). The company is expected to report third-quarter earnings results on Nov 10.
Curis Inc.(CRIS - Free Report) has an Earnings ESP of +10.00% and a Zacks Rank #3. The company is slated to report third-quarter earnings results on Nov 3.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Humana (HUM) Likely to Top Q3 Earnings; Stock to Gain?
We expect Humana Inc. (HUM - Free Report) to beat expectations when it reports third-quarter results on Nov 4, before the market opens.
Why a Likely Positive Surprise?
Our proven model shows that Humana has the right combination of two key ingredients to beat estimates.
Zacks ESP: Earnings ESP of the company +2.94%. This is because the Most Accurate estimate is pegged at $3.15, while the Zacks Consensus Estimate stands at $3.06. A positive ESP is a meaningful indicator of a likely positive earnings surprise for the company. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: Humana carries a Zacks Rank #2 (Buy). Note that stocks with a Zacks Rank of #1 (Strong Buy), 2 or 3 (Hold) have a significantly higher chance of beating on earnings.
Conversely, the Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement.
What is Driving the Better-Than-Expected Earning
Humana’s Individual Medicare Advantage and Healthcare Services businesses likely have delivered solid performances in the to be reported quarter. The Group Medicare Advantage Business is also expected to come out with strong results.
Humana’s Medicare business is expected to drive earnings through growth in stand-alone PDP (Prescription Drug Plans) contracts. Management expects continuous increase in the PDP membership
Humana’s Individual commercial membership is likely to increase despite management’s earlier expectation of membership reduction due to the rise in premiums and benefit redesigns since the beginning of 2016.
The persistent underperformance by Humana’s public exchange business over the last few quarters might adversely affect margins by limiting the sale of Affordable Care Act (ACA) plans on public exchanges.
Humana is likely to witness an increase in operating expenses in the third quarter due to higher benefit expenses as well as depreciation and amortization costs. This might put pressure on margin.
HUMANA INC NEW Price and EPS Surprise
HUMANA INC NEW Price and EPS Surprise | HUMANA INC NEW Quote
Stocks to Consider
Here are some companies from the Medical sector that you may want to consider as these have the right combination of elements to post an earnings beat this quarter:
Aquinox Pharmaceuticals Inc. which is expected to report third-quarter earnings results on Nov 8, has an Earnings ESP of +3.33% and a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
AveXis, Inc. has an Earnings ESP of +11.43% and a Zacks Rank #2 (Buy). The company is expected to report third-quarter earnings results on Nov 10.
Curis Inc.(CRIS - Free Report) has an Earnings ESP of +10.00% and a Zacks Rank #3. The company is slated to report third-quarter earnings results on Nov 3.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>