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Humana (HUM) to Report Q4 Earnings: What's in the Cards?
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Humana Inc.’s (HUM - Free Report) fourth-quarter 2020 results are scheduled to be reported on Feb 3, 2021.
Factors to Impact Q4 Results
The to-be-reported quarter’s earnings results are likely to reflect better revenues. Notably, the consensus mark for revenues of $18.8 billion hints at a 15.5% rise from the prior-year quarter’s reported number.
The company’s top line is likely to have witnessed an upside in the fourth quarter owing to higher premiums and its strong Medicaid and Medicare lines of businesses. The consensus mark for the company's total medical membership and total premiums suggests a hike of 0.9% and 16.8% each from the respective year-ago quarter’s reported figures.
Per its last earnings call, management expects a loss of $2.40 for the fourth quarter. The same is higher than the Zacks Consensus Estimate of loss of $2.35. It should be noted that EPS contribution for Humana is generally the lowest in the fourth quarter. Moreover, the same is likely to have suffered from increasing COVID-19 testing and treatment expenses, and rebounding utilization levels.
The company is expected to have witnessed an uptick in its telehealth services owing to current demand for the same.
However, its specialty membership might have partially taken a hit from membership migration. The consensus mark for the same implies a 1.9% decline from the prior-year quarter’s reported figure.
Additionally, total investment income for the to-be-reported quarter is expected to have noticed a downtrend due to low investment yield.
The Zacks Consensus Estimate for the fourth-quarter benefit ratio stands at 89%, suggesting a rise from the year-ago period's reported level of 87%.
Moreover, on its last earnings call, management expected fourth-quarter consolidated medical expense ratio to be at least 300 basis points more than the level reported in third-quarter 2020, primarily due to the sequential increase in the Group and Specialty segment.
The company is also likely to have witnessed high marketing costs in the fourth quarter.
What the Quantitative Model States
Our proven model doesn’t predict an earnings beat for Humana 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Humana has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of $2.35. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks Rank: Humana currently carries a Zacks Rank #3.
Highlights of Q3 Earnings and Surprise History
Humana’s third-quarter 2020 operating earnings per share of $3.08 beat the Zacks Consensus Estimate of $2.86 by 7.7% on the back of improved revenues. However, the same plunged 38.8% year over year due to COVID-19 testing and treatment costs.
The company boasts a stellar earnings record with its bottom line having delivered a positive surprise in all the trailing four quarters, the average being 11.1%.
Stocks to Consider
Here are a few stocks worth considering from the medical sector with the perfect mix of elements to beat on earnings this reporting cycle:
AmerisourceBergen Corporation has an Earnings ESP of +2.58% and is presently Zacks #3 Ranked.
Tenet Healthcare Corporation (THC - Free Report) is currently #1 Ranked and has an Earnings ESP of +8.32%.
Bausch Health Cos Inc. (BHC - Free Report) has an Earnings ESP of +7.49% and a Zacks Rank of 3 at present.
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Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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Humana (HUM) to Report Q4 Earnings: What's in the Cards?
Humana Inc.’s (HUM - Free Report) fourth-quarter 2020 results are scheduled to be reported on Feb 3, 2021.
Factors to Impact Q4 Results
The to-be-reported quarter’s earnings results are likely to reflect better revenues. Notably, the consensus mark for revenues of $18.8 billion hints at a 15.5% rise from the prior-year quarter’s reported number.
The company’s top line is likely to have witnessed an upside in the fourth quarter owing to higher premiums and its strong Medicaid and Medicare lines of businesses. The consensus mark for the company's total medical membership and total premiums suggests a hike of 0.9% and 16.8% each from the respective year-ago quarter’s reported figures.
Per its last earnings call, management expects a loss of $2.40 for the fourth quarter. The same is higher than the Zacks Consensus Estimate of loss of $2.35. It should be noted that EPS contribution for Humana is generally the lowest in the fourth quarter. Moreover, the same is likely to have suffered from increasing COVID-19 testing and treatment expenses, and rebounding utilization levels.
The company is expected to have witnessed an uptick in its telehealth services owing to current demand for the same.
However, its specialty membership might have partially taken a hit from membership migration. The consensus mark for the same implies a 1.9% decline from the prior-year quarter’s reported figure.
Additionally, total investment income for the to-be-reported quarter is expected to have noticed a downtrend due to low investment yield.
The Zacks Consensus Estimate for the fourth-quarter benefit ratio stands at 89%, suggesting a rise from the year-ago period's reported level of 87%.
Moreover, on its last earnings call, management expected fourth-quarter consolidated medical expense ratio to be at least 300 basis points more than the level reported in third-quarter 2020, primarily due to the sequential increase in the Group and Specialty segment.
The company is also likely to have witnessed high marketing costs in the fourth quarter.
What the Quantitative Model States
Our proven model doesn’t predict an earnings beat for Humana 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Humana has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of $2.35. You can see the complete list of today’s Zacks #1 Rank stocks here.
Humana Inc. Price and EPS Surprise
Humana Inc. price-eps-surprise | Humana Inc. Quote
Zacks Rank: Humana currently carries a Zacks Rank #3.
Highlights of Q3 Earnings and Surprise History
Humana’s third-quarter 2020 operating earnings per share of $3.08 beat the Zacks Consensus Estimate of $2.86 by 7.7% on the back of improved revenues. However, the same plunged 38.8% year over year due to COVID-19 testing and treatment costs.
The company boasts a stellar earnings record with its bottom line having delivered a positive surprise in all the trailing four quarters, the average being 11.1%.
Stocks to Consider
Here are a few stocks worth considering from the medical sector with the perfect mix of elements to beat on earnings this reporting cycle:
AmerisourceBergen Corporation has an Earnings ESP of +2.58% and is presently Zacks #3 Ranked.
Tenet Healthcare Corporation (THC - Free Report) is currently #1 Ranked and has an Earnings ESP of +8.32%.
Bausch Health Cos Inc. (BHC - Free Report) has an Earnings ESP of +7.49% and a Zacks Rank of 3 at present.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Download Marijuana Moneymakers FREE >>