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What Awaits Health Insurance Innovations (HIIQ) in Q1 Earnings?

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Health Insurance Innovations, Inc. is set to report first-quarter 2019 earnings on May 6, after market close. The company delivered positive surprise in the last four reported quarters.

Let’s see what’s in store for the company in the soon-to-be reported quarter.

Health Insurance Innovations’ first-quarter results are likely to benefit from its compelling portfolio of core products and  individual and family plans along with life, critical illness, accidental death dental, vision and a range of other supplemental plans.

The strategy to focus on longer duration, higher lifetime value plans and e-commerce penetration and shift from lower cost and lower margin products should continue to benefit the company.

The initiative to re-enter the 65-plus market in the first quarter is likely to aid results.

At agile, average premium is likely to increase with enhanced cross-sell experience.

Also, the company has intensified focus on the Life Insurance market and added compelling products to the portfolio, which should aid results.

Continued share buybacks should provide additional upside to the bottom line.

The Department of Health and Human Services of the U.S. government implemented a rule on Oct 2, 2018 that changed the maximum duration of short-term medical policies to less than one year from the present duration of less than three months. Also, the rule allows more affordable health insurance options. The company expects to gain from favorable regulatory outcomes.

The Zacks Consensus Estimate for earnings per share for the quarter to-be reported is pegged at 49 cents, implying a decrease of 5.8% from the year-ago reported figure.

What Our Quantitative Model Predicts

Our proven model suggests that Health Insurance Innovations is likely to beat on earnings this reporting season. This is because the stock has the right combination of a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).

Earnings ESP: Health Insurance Innovations has an Earnings ESP of +15.46%. This is because the Most Accurate Estimate of 56 cents is pegged higher than the Zacks Consensus Estimate of 49 cents. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Health Insurance Innovations, Inc. Price and EPS Surprise

Zacks Rank: Health Insurance Innovations sports a Zacks Rank #1.

We caution against Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks going into an earnings announcement, especially when the company is seeing negative estimate revisions.

Other Stocks to Consider

Some stocks from the insurance industry also with the right combination of elements to surpass estimates this time around are as follows:

Brighthouse Financial, Inc. (BHF - Free Report) is set to report first-quarter earnings on May 6. The company has an Earnings ESP of +0.47% and a Zacks Rank #3. 

You can see the complete list of today’s Zacks #1 Rank stocks here.

Everest Re Group, Ltd. has an Earnings ESP of +3.17% and a Zacks Rank of 3. The company is scheduled to release first-quarter earnings on May 6.

Sun Life Financial Inc. (SLF - Free Report) has an Earnings ESP of +1.10% and a Zacks Rank of 3. The company is slated to announce first-quarter earnings on May 8.

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