We are past the halfway mark in the first-quarter earnings season, and earnings and revenue figures so far point at improvement from the past few quarters.

Per the latest Earnings Preview, total earnings for the 288 S&P 500 members, constituting 63.8% of the index’s total market capitalization, that have reported results (as of Apr 28) across all sectors, are up 13.7% from the year-ago period, driven by a 8.2% rise in revenues. Going by the scorecard, 76.4% companies delivered an earnings beat, while 6.1% surpassed revenue estimates.

Healthcare, under the Medical umbrella, is one of the seven sectors in the S&P 500 group. So far, 53.7% of the total Medical sector companies have reported first-quarter results. The beat ratio is strong with 93.1% companies surpassing bottom-line expectations and 79.3% outperforming on the revenue front.

The sector has been in the limelight since the change of power at the White House. President Donald Trump, who is keen to repeal and replace the Health Care Reform Act more popularly called Obamacare, has injected a fresh dose of uncertainty in the industry.

Trump's version of the policy called the American Health Care Act (AHCA) received a lukewarm response, and called for further amendments to the proposed bill. The proposed amendment calls for setting aside funds to be used in covering a portion of costs alongside insurers. This would invariably result in bringing down premium costs while accommodating more people under the healthcare umbrella.

Had the AHCA been passed in its original form (without the proposed amendment), around 6–10 million Americans might have lost coverage. This would invariably have resulted in shrinkage in the customer base for hospital companies as a chunk of the population would lose their healthcare coverage. If the amendment is enacted, it would be effective from Jan 1, 2018. Also, the roll back of Medicaid expansion would be against the interest of Medicaid centric companies.  

The ultimate impact on the fortunes of healthcare stocks will depend on the final shape that the law takes.

Let’s take a sneak peek into earnings of these players slated for release on May 2.

Aetna Inc. has an Earnings ESP of -0.42% as the Most Accurate estimate of $2.35 is below the Zacks Consensus Estimate of $2.36. Though the company has a Zacks Rank #3 (Hold), its negative ESP makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Last quarter, Aetna beat the Zacks Consensus Estimate by 12.41%. This time, however, the company is unlikely to come up with a beat.

With respect to the surprise trend, Aetna surpassed expectations in each of the last four quarters, with an average surprise of 5.81%.

The company’s results will continue to suffer from the ongoing losses in its Individual Commercial Affordable Care Act-compliant products sold on public exchanges. The results will, however, reflect premium growth in the company’s Medicare business.  The company’s focus on managing costs will keep a check on its operating expenses (read more:Will Aetna Pull a Surprise this Earnings Season?).

Aetna Inc. Price and EPS Surprise

Aetna Inc. Price and EPS Surprise | Aetna Inc. Quote

HCA Holdings, Inc. (HCA Quick QuoteHCA - Free Report) has an Earnings ESP of 0.00% as the Most Accurate estimate of $1.74 is in line with the Zacks Consensus Estimate. This makes surprise prediction difficult despite the company’s Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Last quarter, HCA Holdings, beat the Zacks Consensus Estimate by 6.18%. This time, however, the company is unlikely to come up with a beat.
With respect to the surprise trend, HCA Holdings, surpassed expectations in each of the last four quarters, with an average surprise of 10.16%.

The company reported same facility admission and adjusted admissions growth for nine consecutive years, Emergency Room visit growth for 10 consecutive years and surgical growth for three consecutive years. The trend is expected to continue in the quarter to be reported. The company anticipates revenues of approximately $10.623 billion and net income to approximate $659 million, or $1.74 per diluted share (read more:  Will HCA Holdings Q1 Earnings Pull Off a Surprise?).

HCA Holdings, Inc. Price and EPS Surprise

HCA Holdings, Inc. Price and EPS Surprise | HCA Holdings, Inc. Quote

Envision Healthcare Corporation has an Earnings ESP of -5.80% as the Most Accurate estimate of 65 cents is below the Zacks Consensus Estimate of 69 cents. The company carries a Zacks Rank # 4 (Sell). We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Last quarter, Envision Healthcare missed the Zacks Consensus Estimate by 10%. This time, again, the company is unlikely to come up with a beat.
With respect to the surprise trend, Envision Healthcare missed expectations in two of the last four quarters, with an average negative surprise of 2.27%.

Amedisys Inc. (AMED Quick QuoteAMED - Free Report) has an Earnings ESP of -2.44% as the Most Accurate estimate of 40 cents is below the Zacks Consensus Estimate of 41 cents. The company carries a Zacks Rank #2 (Buy). Despite its favorable rank, a negative Earnings ESP makes our surprise prediction difficult.

Last quarter, Amedisys surpassed the Zacks Consensus Estimate by 10%. This time, however, the company is unlikely to come up with a beat.

With respect to the surprise trend, Amedisys beat expectations in two of the last four quarters, with an average surprise of 2.38%.

DaVita HealthCare Partners Inc. (DVA Quick QuoteDVA - Free Report) has an Earnings ESP of 0.00% as the Most Accurate estimate of 82 cents is in line with the Zacks Consensus Estimate . DaVita carries a Zacks Rank #3 which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.

Last quarter, DaVita beat the Zacks Consensus Estimate by 4.4%. DaVIta surpassed expectations in each of the last four quarters, with an average surprise of 4.39%.

Steady overseas expansion through strategic alliances and acquisition of dialysis centers has played a key role in boosting growth for DaVita. In January, the company disclosed a new supply agreement with Amgen. The contract is a six-year one that is expected to provide ‘substantial savings’ from the beginning of the year. However, other specific terms (including pricing) of the agreement have been kept under wraps (read more: DaVita: What's in the Cards this Earnings Season?)