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Health Insurance Innovations (HIIQ) Q2 Earnings Preview

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Health Insurance Innovations, Inc. is set to report second-quarter 2019 earnings on Aug 5, after market close. The company delivered positive surprise in three of the last four reported quarters.

Let’s see what’s in store for the company in the soon-to-be reported quarter.

Health Insurance Innovations’ second-quarter results are likely to benefit from its compelling portfolio of core products and  individual and family plans along with life, critical illness, accidental death dental, vision and a range of other supplemental plans.

The strategy to focus on longer duration, higher lifetime value plans and e-commerce penetration and shift from lower cost and lower margin products should continue to benefit the company.

Better cross-sell experience is likely to aid premiums at agile.

Focus on the Life Insurance market and addition of compelling products to the portfolio should aid results.

Continued share buybacks should drive the bottom line.

The Department of Health and Human Services of the U.S. government implemented a rule on Oct 2, 2018 that changed the maximum duration of short-term medical policies to less than one year from the present duration of less than three months. Also, the rule allows more affordable health insurance options. The company expects to gain from favorable regulatory outcomes.

Increase in digital marketing investment at e-commerce channels is likely to escalate selling, general and administrative expenses.

The Zacks Consensus Estimate for earnings per share for the quarter to-be reported is pegged at 39 cents, implying a decrease of 36.1% from the year-ago reported figure.

The company estimates second-quarter revenues to represent 18% of 2019 revenues and 12% of adjusted earnings.

What Our Quantitative Model Predicts

Our proven model does not conclusively show that Health Insurance Innovations is likely to beat on earnings this reporting season. This is because a stock needs to have the right combination of a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). But this is not the case here as you can see below.

Earnings ESP: Health Insurance Innovations has an Earnings ESP of -22.41%. This is because the Most Accurate Estimate of 30 cents is pegged lower than the Zacks Consensus Estimate of 39 cents. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Health Insurance Innovations, Inc. Price and EPS Surprise

Zacks Rank: Health Insurance Innovations sports a Zacks Rank #1.

We caution against Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks going into an earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Some stocks from the insurance industry with the right combination of elements to surpass estimates this time around are as follows:

American Financial Group (AFG - Free Report) is set to report second-quarter earnings on Aug 6. The company has an Earnings ESP of +0.50% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Voya Financial (VOYA - Free Report) has an Earnings ESP of +0.68% and a Zacks Rank of 3. The company is scheduled to release second-quarter earnings on Aug 6.

Alleghany has an Earnings ESP of +1.69% and a Zacks Rank of 3. The company is slated to announce second-quarter earnings on Aug 6.

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