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Healthcare Q2 Earnings to Watch on Jul 27: ANTM, MOH & More
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The second-quarter earnings season is in full swing this week. So far, we have results from 126 S&P 500 members that combined account for 32.7% of the index’s total market capitalization as per the Earnings Trends report. Revenues are up 2.6% while earnings are down 1.1%. However, the beat ratio is 70.6% for the bottom line and 55.6% for the top line.
So far, 15.4% of the total Medical sector has come up with second-quarter results. The sector is expected to deliver 1.8% earnings growth on 7.7% higher revenues. This compares favorably with the projected 3.4% earnings decline on 0.5% lower revenues in the S&P 500 index.
Healthcare is part of the broader medical sector. Let’s see what factors might have influenced its performance in the second quarter.
Within the Healthcare sector, health insurers are expected to see top-line growth on an increase in member enrollment. The Government business which includes Medicare and Medicaid will likely see a surge in enrollment due to increased demand from the surging population of baby boomers. Also ancillary businesses which are outside the purview of the Health Care Reform Act will likely see higher earnings.
While diversified product offerings and expansion into international markets are likely to have beefed up revenues, cost management should give the bottom line a boost.
However, healthcare companies continued to face pressure from pricing, regulatory compliance costs, rising medical costs and competition.
Another industry sub-segment, which focuses on providing biopharmaceutical development services, is expected to see top-line growth as pharmaceutical companies continue to increasingly outsource clinical development and commercialization support activities. Moreover, increased use of technology and data assets globally will drive the performance of players in this sub-segment.
As many as 189 companies will release results from Jul 25–29. Let’s find out what’s in store for four major healthcare providers that will report second-quarter earnings on Jul 27:
Anthem Inc. , headquartered in Indianapolis, IN, operates as a health benefits company in the United States. Last quarter, the company posted a positive earnings surprise of 3.59%. It has an Earnings ESP of -0.93% and a Zacks Rank #3 (Hold). The Most Accurate estimate for the quarter is pegged at $3.21 per share, three cents below the Zacks Consensus Estimate.
Anthem’s operating revenues are expected to have improved in the second quarter on the back of strong enrollment in government business and Medicaid.
Total membership, both fully insured and self-funded, are likely to have increased due to the expansion of the Affordable Care Act (ACA) and a spate of deal wins.
With respect to the surprise trend, the company delivered positive surprises in three of the last four quarters, with an average beat of 6.65%. (Read more: Can Anthem Pull a Surprise this Earnings Season?)
The Advisory Board Company headquartered in Washington, D.C. provides research and insight, performance technology software, consulting and management, and data-and tech-enabled services in the United States and internationally.
Last quarter, the company posted a positive earnings surprise of 16.67%. It has an Earnings ESP of 0.00% and a Zacks Rank #3. Both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 22 cents.
With respect to the surprise trend, the company delivered positive surprises in each of the last four quarters, with an average beat of 152.65%.
Molina Healthcare, Inc. (MOH - Free Report) headquartered in Long Beach, CA, provides Medicaid-related solutions to meet the healthcare needs of low-income families and individuals; and assists state agencies in their administration of the Medicaid program.
Last quarter, the company missed the Zacks Consensus Estimate by 37.04%. It has an Earnings ESP of -3.85% and a Zacks Rank #4 (Sell). The Most Accurate estimate for the quarter is pegged at 50 cents per share, two cents below the Zacks Consensus Estimate.
With respect to the surprise trend, the company delivered positive surprises in three out of past four quarters, with an average beat of 2.46%.
Quintiles Transnational Holdings Inc., based in Durham, NC, through its subsidiary, Quintiles Transnational Corp., provides biopharmaceutical development services and commercial outsourcing services in the Americas, Europe, Africa, and the Asia-Pacific.
Last quarter, the company missed the Zacks Consensus Estimate by 3.49%. It has an Earnings ESP of -1.11% and a Zacks Rank #3. The Most Accurate estimate for the quarter is pegged at 89 cents per share, one cent below the Zacks Consensus Estimate.
The company delivered positive surprises in each of the past four quarters, with an average beat of 8.61%.
Stay tuned! Check back on our full write-up on earnings releases of these stocks.
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Healthcare Q2 Earnings to Watch on Jul 27: ANTM, MOH & More
The second-quarter earnings season is in full swing this week. So far, we have results from 126 S&P 500 members that combined account for 32.7% of the index’s total market capitalization as per the Earnings Trends report. Revenues are up 2.6% while earnings are down 1.1%. However, the beat ratio is 70.6% for the bottom line and 55.6% for the top line.
So far, 15.4% of the total Medical sector has come up with second-quarter results. The sector is expected to deliver 1.8% earnings growth on 7.7% higher revenues. This compares favorably with the projected 3.4% earnings decline on 0.5% lower revenues in the S&P 500 index.
Healthcare is part of the broader medical sector. Let’s see what factors might have influenced its performance in the second quarter.
Within the Healthcare sector, health insurers are expected to see top-line growth on an increase in member enrollment. The Government business which includes Medicare and Medicaid will likely see a surge in enrollment due to increased demand from the surging population of baby boomers. Also ancillary businesses which are outside the purview of the Health Care Reform Act will likely see higher earnings.
While diversified product offerings and expansion into international markets are likely to have beefed up revenues, cost management should give the bottom line a boost.
However, healthcare companies continued to face pressure from pricing, regulatory compliance costs, rising medical costs and competition.
Another industry sub-segment, which focuses on providing biopharmaceutical development services, is expected to see top-line growth as pharmaceutical companies continue to increasingly outsource clinical development and commercialization support activities. Moreover, increased use of technology and data assets globally will drive the performance of players in this sub-segment.
As many as 189 companies will release results from Jul 25–29. Let’s find out what’s in store for four major healthcare providers that will report second-quarter earnings on Jul 27:
Anthem Inc. , headquartered in Indianapolis, IN, operates as a health benefits company in the United States. Last quarter, the company posted a positive earnings surprise of 3.59%. It has an Earnings ESP of -0.93% and a Zacks Rank #3 (Hold). The Most Accurate estimate for the quarter is pegged at $3.21 per share, three cents below the Zacks Consensus Estimate.
Anthem’s operating revenues are expected to have improved in the second quarter on the back of strong enrollment in government business and Medicaid.
Total membership, both fully insured and self-funded, are likely to have increased due to the expansion of the Affordable Care Act (ACA) and a spate of deal wins.
With respect to the surprise trend, the company delivered positive surprises in three of the last four quarters, with an average beat of 6.65%. (Read more: Can Anthem Pull a Surprise this Earnings Season?)
ANTHEM INC Price and EPS Surprise
ANTHEM INC Price and EPS Surprise | ANTHEM INC Quote
The Advisory Board Company headquartered in Washington, D.C. provides research and insight, performance technology software, consulting and management, and data-and tech-enabled services in the United States and internationally.
Last quarter, the company posted a positive earnings surprise of 16.67%. It has an Earnings ESP of 0.00% and a Zacks Rank #3. Both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 22 cents.
With respect to the surprise trend, the company delivered positive surprises in each of the last four quarters, with an average beat of 152.65%.
ADVISORY BOARD Price and EPS Surprise
ADVISORY BOARD Price and EPS Surprise | ADVISORY BOARD Quote
Molina Healthcare, Inc. (MOH - Free Report) headquartered in Long Beach, CA, provides Medicaid-related solutions to meet the healthcare needs of low-income families and individuals; and assists state agencies in their administration of the Medicaid program.
Last quarter, the company missed the Zacks Consensus Estimate by 37.04%. It has an Earnings ESP of -3.85% and a Zacks Rank #4 (Sell). The Most Accurate estimate for the quarter is pegged at 50 cents per share, two cents below the Zacks Consensus Estimate.
With respect to the surprise trend, the company delivered positive surprises in three out of past four quarters, with an average beat of 2.46%.
MOLINA HLTHCR Price and EPS Surprise
MOLINA HLTHCR Price and EPS Surprise | MOLINA HLTHCR Quote
Quintiles Transnational Holdings Inc., based in Durham, NC, through its subsidiary, Quintiles Transnational Corp., provides biopharmaceutical development services and commercial outsourcing services in the Americas, Europe, Africa, and the Asia-Pacific.
Last quarter, the company missed the Zacks Consensus Estimate by 3.49%. It has an Earnings ESP of -1.11% and a Zacks Rank #3. The Most Accurate estimate for the quarter is pegged at 89 cents per share, one cent below the Zacks Consensus Estimate.
The company delivered positive surprises in each of the past four quarters, with an average beat of 8.61%.
QUINTILES TRANS Price and EPS Surprise
QUINTILES TRANS Price and EPS Surprise | QUINTILES TRANS Quote
Stay tuned! Check back on our full write-up on earnings releases of these stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>