Back to top

Image: Bigstock

Anthem (ANTM) to Report Q3 Earnings: What's in the Cards?

Read MoreHide Full Article

Anthem, Inc. (ANTM - Free Report) is scheduled to release third-quarter 2021 results on Oct 20, before the opening bell. The company outpaced estimates in three of the trailing four quarters and missed once.

Factors to Note

Improved premiums and growing membership owing to the company’s Medicare and Medicaid businesses coupled with rate increases are likely to have contributed to Anthem’s total revenues in the third quarter. Rise in pharmacy product revenues across the company’s IngenioRx segment might have benefited the to-be-reported quarter’s performance.

The Zacks Consensus Estimate for Anthem’s third-quarter revenues is pegged at $35.3 billion, suggesting growth of 15.3% from the year-ago quarter. The consensus mark for third-quarter premiums stands at $30.1 billion, which indicates an improvement of 14.1% from the prior-year reported figure.

The company’s medical membership is expected to have increased in the to-be-reported quarter, courtesy of its strong Government business. Several contract wins, solid membership gains, and leading market position in Medicaid and Medicare are likely to have driven the business. The company’s Commercial business may have contributed to the overall membership growth in the third quarter.

The consensus mark for medical membership in Government business suggests growth of 16.2% from the year-ago quarter, while the same for Commercial business suggests indicates an improvement of 0.6% year over year.

The Medical Loss Ratio is expected to be high in the to-be-reported quarter due to higher non-COVID utilization, which remained subdued in the prior-year quarter. The metric might have suffered a blow due to the repeal of the health insurance tax in 2021.

Anthem’s expenses are likely to have remained elevated in the to-be-reported quarter due to start-up expenses associated with new contracts and other additional investments in digital innovation and technology advancements.

The Zacks Consensus Estimate for third-quarter earnings is pegged at $6.38 per share, suggests an improvement of 51.9% from the prior-year quarter.

What Our Quantitative Model Unveils

Our proven model predicts an earnings beat for Anthem this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: Anthem has an Earnings ESP of +2.23%. This is because the Most Accurate Estimate of $6.52 is pegged higher than the Zacks Consensus Estimate of $6.38. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Anthem, Inc. Price and EPS Surprise


Anthem, Inc. Price and EPS Surprise

Anthem, Inc. price-eps-surprise | Anthem, Inc. Quote

Zacks Rank: Anthem carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Some other stocks worth considering from the medical space with a perfect mix of elements to surpass estimates in the upcoming quarterly releases are as follows:

Horizon Therapeutics Public Limited Company (HZNP - Free Report) has an Earnings ESP of +1.85% and a Zacks Rank #1, currently.

Avantor, Inc. (AVTR - Free Report) has an Earnings ESP of +1.19% and a Zacks Rank of 2, presently.

HCA Healthcare, Inc. (HCA - Free Report) has an Earnings ESP of +6.41% and a Zacks Rank of 3 at present.