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Anthem (ANTM) Q3 Earnings: What's in Store for the Stock?
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Anthem Inc. will release third-quarter 2018 results on Oct 31, before the market opens. In second-quarter 2018, the company delivered a positive earnings surprise of 1.43%, primarily led by solid segmental results.
The Zacks Consensus Estimate for third-quarter earnings is pegged at $3.67, up 38.5% year over year.
Let’s see, how things are shaping up for this to-be reported quarter.
Anthem’s top line have been rising over the past few quarters, mainly driven by its Government Business as well as Commercial & Specialty Business segments. The momentum is likely to continue in the third quarter as well as the Zacks Consensus Estimate for revenues from Government business is expected to be nearly $12.5 billion, up 3.8% year over year and the same for the Commercial business is projected to be $10.6 billion, up 6% year over year.
Moreover, the Zacks Consensus Estimate for revenues in the third quarter of 2018 stands at $22.9 billion, up 3.6% year over year.
In the to-be reported quarter, the company’s local group insured medical cost trend will likely be 6%, plus or minus 50 basis points.
The company expects its Group MA business to grow in the second half of 2018. Meanwhile, the company might have witnessed a reduction in its Medical membership for Commercial segment to be sluggish.
However, the company is anticipated to have incurred escalating expenses as a result of investments in enhancing technological capabilities and product developments along with other growth initiatives.
What the Quantitative Model States
Per our proven model, Anthem is likely to beat on earnings this quarter to be reported. 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) for this to happen.
Earnings ESP: Anthem has an Earnings ESP of +1.69%. This is because the Most Accurate Estimate is pegged at $3.73, higher than the Zacks Consensus Estimate of $3.67. Moreover, a positive ESP is indicative of a likely earnings surprise. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: Anthem carries a Zacks Rank #2, which increases the predictive power of ESP. Thus, with this ideal combination, chances of beating estimates are significantly higher for the company.
Conversely, the Sell-rated stocks (#4 or 5) should never be considered going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks to Consider
Some other stocks worth considering from the medical sector with the perfect combination of elements to also surpass estimates in the next releases are as follows:
Humana Inc. (HUM - Free Report) is set to report third-quarter 2018 earnings performance on Nov 7. The stock has an Earnings ESP of +2.22% and a Zacks Rank of 2.
Bausch Health Cos Inc. (BHC - Free Report) has an Earnings ESP of +6.15%. This #1 Ranked company is set to release third-quarter financial numbers on Nov 6.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Anthem (ANTM) Q3 Earnings: What's in Store for the Stock?
Anthem Inc. will release third-quarter 2018 results on Oct 31, before the market opens. In second-quarter 2018, the company delivered a positive earnings surprise of 1.43%, primarily led by solid segmental results.
The Zacks Consensus Estimate for third-quarter earnings is pegged at $3.67, up 38.5% year over year.
Let’s see, how things are shaping up for this to-be reported quarter.
Anthem’s top line have been rising over the past few quarters, mainly driven by its Government Business as well as Commercial & Specialty Business segments. The momentum is likely to continue in the third quarter as well as the Zacks Consensus Estimate for revenues from Government business is expected to be nearly $12.5 billion, up 3.8% year over year and the same for the Commercial business is projected to be $10.6 billion, up 6% year over year.
Moreover, the Zacks Consensus Estimate for revenues in the third quarter of 2018 stands at $22.9 billion, up 3.6% year over year.
In the to-be reported quarter, the company’s local group insured medical cost trend will likely be 6%, plus or minus 50 basis points.
The company expects its Group MA business to grow in the second half of 2018. Meanwhile, the company might have witnessed a reduction in its Medical membership for Commercial segment to be sluggish.
However, the company is anticipated to have incurred escalating expenses as a result of investments in enhancing technological capabilities and product developments along with other growth initiatives.
What the Quantitative Model States
Per our proven model, Anthem is likely to beat on earnings this quarter to be reported. 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) for this to happen.
Earnings ESP: Anthem has an Earnings ESP of +1.69%. This is because the Most Accurate Estimate is pegged at $3.73, higher than the Zacks Consensus Estimate of $3.67. Moreover, a positive ESP is indicative of a likely earnings surprise. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Anthem, Inc. Price and EPS Surprise
Anthem, Inc. Price and EPS Surprise | Anthem, Inc. Quote
Zacks Rank: Anthem carries a Zacks Rank #2, which increases the predictive power of ESP. Thus, with this ideal combination, chances of beating estimates are significantly higher for the company.
Conversely, the Sell-rated stocks (#4 or 5) should never be considered going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks to Consider
Some other stocks worth considering from the medical sector with the perfect combination of elements to also surpass estimates in the next releases are as follows:
Amgen Inc. (AMGN - Free Report) is set to report third-quarter 2018 earnings figures on Nov 6. The stock has an Earnings ESP of +5.88 % and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Humana Inc. (HUM - Free Report) is set to report third-quarter 2018 earnings performance on Nov 7. The stock has an Earnings ESP of +2.22% and a Zacks Rank of 2.
Bausch Health Cos Inc. (BHC - Free Report) has an Earnings ESP of +6.15%. This #1 Ranked company is set to release third-quarter financial numbers on Nov 6.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>