Anthem Inc. will release first-quarter 2021 results on Apr 21, before market open.
In the last reported quarter, Anthem’s earnings of $2.54 per share missed the Zacks Consensus Estimate by 1.2%. Further, the bottom line plunged 34.5% year over year due to elevated costs.
Let’s see how things are shaping up prior to the earnings announcement.
The company’s performance is likely to have witnessed better revenues in the to-be reported quarter. Anthem is likely to have continued witnessing a surge in telehealth services, particularly in the behavioral health line. This, in turn, is expected to have contributed to its revenues.
The Zacks Consensus Estimate for the to-be-reported quarter’s revenues indicates a 12.9% rise from the year-ago quarter’s reported figure. This upside can be attributed to rising membership and improved premiums.
The Zacks Consensus Estimate for first-quarter earnings stands at $6.86, implying a 5.9% increase from the prior-year quarter’s reported number.
Increase in Government business enrolment is likely to have offset the fall in commercial enrolment.Overall, medical membership might have witnessed a spike on the back of organic growth and market share gains in Medicaid and Medicare. The consensus mark for Medical membership in Government business hints at a hike of 16.8% from the prior-year period’s reported number while the same for Commercial business suggests a dip of 1.7%. The consensus estimate for Government business revenues indicates a 14.6% improvement from the year-earlier period’s reported figure.
Additionally, Anthem is likely to have benefited from a steady cash flow in the first quarter.
However, the company might have incurred higher selling, general and administrative expenses, constant investments, increased spending on growth-driving projects as well as costs related to COVID-19 diagnosis.
What the Quantitative Model States
Our proven model predicts an earnings beat for Anthem this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which you can see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Anthem has an Earnings ESP of +2.02%. This is because the Most Accurate Estimate is pegged at $7, higher than the Zacks Consensus Estimate of $6.86.
Zacks Rank: Anthem carries a Zacks Rank #3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are a few stocks worth considering from the medical sector with the perfect mix of elements to beat on earnings in the respective upcoming releases:
Centene Corporation (CNC - Free Report) has an Earnings ESP of +18.89% and a Zacks Rank of 3, currently.
HCA Healthcare, Inc. (HCA - Free Report) is a #2 Ranked player and has an Earnings ESP of +6.82%.
AbbVie Inc. (ABBV - Free Report) presently has a Zacks Rank of 2 and an Earnings ESP of +2.54%.
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Anthem Inc. will release first-quarter 2021 results on Apr 21, before market open.
In the last reported quarter, Anthem’s earnings of $2.54 per share missed the Zacks Consensus Estimate by 1.2%. Further, the bottom line plunged 34.5% year over year due to elevated costs.
Let’s see how things are shaping up prior to the earnings announcement.
The company’s performance is likely to have witnessed better revenues in the to-be reported quarter. Anthem is likely to have continued witnessing a surge in telehealth services, particularly in the behavioral health line. This, in turn, is expected to have contributed to its revenues.
The Zacks Consensus Estimate for the to-be-reported quarter’s revenues indicates a 12.9% rise from the year-ago quarter’s reported figure. This upside can be attributed to rising membership and improved premiums.
The Zacks Consensus Estimate for first-quarter earnings stands at $6.86, implying a 5.9% increase from the prior-year quarter’s reported number.
Increase in Government business enrolment is likely to have offset the fall in commercial enrolment.Overall, medical membership might have witnessed a spike on the back of organic growth and market share gains in Medicaid and Medicare. The consensus mark for Medical membership in Government business hints at a hike of 16.8% from the prior-year period’s reported number while the same for Commercial business suggests a dip of 1.7%. The consensus estimate for Government business revenues indicates a 14.6% improvement from the year-earlier period’s reported figure.
Additionally, Anthem is likely to have benefited from a steady cash flow in the first quarter.
However, the company might have incurred higher selling, general and administrative expenses, constant investments, increased spending on growth-driving projects as well as costs related to COVID-19 diagnosis.
What the Quantitative Model States
Our proven model predicts an earnings beat for Anthem this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which you can see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Anthem has an Earnings ESP of +2.02%. This is because the Most Accurate Estimate is pegged at $7, higher than the Zacks Consensus Estimate of $6.86.
Zacks Rank: Anthem carries a Zacks Rank #3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are a few stocks worth considering from the medical sector with the perfect mix of elements to beat on earnings in the respective upcoming releases:
Centene Corporation (CNC - Free Report) has an Earnings ESP of +18.89% and a Zacks Rank of 3, currently.
HCA Healthcare, Inc. (HCA - Free Report) is a #2 Ranked player and has an Earnings ESP of +6.82%.
AbbVie Inc. (ABBV - Free Report) presently has a Zacks Rank of 2 and an Earnings ESP of +2.54%.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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