We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is a Beat in the Cards for Humana's (HUM) Earnings in Q4?
Read MoreHide Full Article
Humana Inc.’s (HUM - Free Report) fourth-quarter 2019 results are scheduled to be reported on Feb 5, 2019.
The Zacks Consensus Estimate for earnings is pegged at $2.20, indicating a decline of 17% from the year-ago reported figure.
The consensus mark for revenues of $16.1 billion suggests an uptick of 14% from the prior-year reported number.
Factors to Impact Q4 Results
The company’s top line is likely to have witnessed an upside during the fourth quarter on the back of growth in premiums, and its strong Medicaid and Medicare lines of businesses.
However, the overall earnings might have been affected by lower number of members due to consequent decline in Prescription Drug Plan (PDP) enrolment. The consensus mark for Speciality membership hints at a fall of 26.8% from the year-ago reported figure.
Humana’s fourth-quarter earnings performance might also reflect escalating growth-related investments.
The company is expected to have enjoyed healthy operating cash flow in the quarter to be reported on the back of excellent operating efficiency and solid working capital.
Additionally, total investment income for the to-be-reported quarter might have noticed an uptrend. The consensus estimate for the same implies a 28.6% rise from the year-ago reported figure.
Per its last earnings call, management had supposedly made certain incremental investments in the fourth quarter, which include higher Medicare annual election period marketing spend plus increased sales and service costs related to the PDP plan changes, etc. An elevation in such expenditures might weigh down the company’s margins.
What the Quantitative Model States
Our proven model predicts 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 odds of beating estimates, which you can see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Humana carries a Zacks Rank #3, which increases the predictive power of ESP. Plus, its positive ESP makes us hopeful of a positive surprise in the upcoming quarterly release.
Highlights of Q3 Earnings and Surprise History
Humana’s third-quarter 2019 operating earnings per share of $5.03 beat both the Zacks Consensus Estimate and the year-over-year figure by 9.8%. This positivity can primarily be attributed to Medicare Advantage membership growth and higher revenues.
The company boasts a stellar earnings record, having delivered a positive surprise in all the trailing four quarters, the average being 8.6%.
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:
Change Healthcare Inc. has an Earnings ESP of +1.83% and a Zacks Rank of 1. The company is set to report fourth-quarter earnings on Feb 12.
Clovis Oncology, Inc. has an Earnings ESP of +3.56% and a Zacks Rank #2. The company is set to report fourth-quarter earnings performance on Feb 24.
Tandem Diabetes Care, Inc. (TNDM - Free Report) is slated to release fourth-quarter financial figures on Feb 24. The stock has an Earnings ESP of +27.59% and is Zacks #1 Ranked.
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain. See 5 Stocks Set to Double>>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Is a Beat in the Cards for Humana's (HUM) Earnings in Q4?
Humana Inc.’s (HUM - Free Report) fourth-quarter 2019 results are scheduled to be reported on Feb 5, 2019.
The Zacks Consensus Estimate for earnings is pegged at $2.20, indicating a decline of 17% from the year-ago reported figure.
The consensus mark for revenues of $16.1 billion suggests an uptick of 14% from the prior-year reported number.
Factors to Impact Q4 Results
The company’s top line is likely to have witnessed an upside during the fourth quarter on the back of growth in premiums, and its strong Medicaid and Medicare lines of businesses.
However, the overall earnings might have been affected by lower number of members due to consequent decline in Prescription Drug Plan (PDP) enrolment. The consensus mark for Speciality membership hints at a fall of 26.8% from the year-ago reported figure.
Humana’s fourth-quarter earnings performance might also reflect escalating growth-related investments.
The company is expected to have enjoyed healthy operating cash flow in the quarter to be reported on the back of excellent operating efficiency and solid working capital.
Additionally, total investment income for the to-be-reported quarter might have noticed an uptrend. The consensus estimate for the same implies a 28.6% rise from the year-ago reported figure.
Per its last earnings call, management had supposedly made certain incremental investments in the fourth quarter, which include higher Medicare annual election period marketing spend plus increased sales and service costs related to the PDP plan changes, etc. An elevation in such expenditures might weigh down the company’s margins.
What the Quantitative Model States
Our proven model predicts 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 odds of beating estimates, which you can see below. 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 +0.15%. 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 carries a Zacks Rank #3, which increases the predictive power of ESP. Plus, its positive ESP makes us hopeful of a positive surprise in the upcoming quarterly release.
Highlights of Q3 Earnings and Surprise History
Humana’s third-quarter 2019 operating earnings per share of $5.03 beat both the Zacks Consensus Estimate and the year-over-year figure by 9.8%. This positivity can primarily be attributed to Medicare Advantage membership growth and higher revenues.
The company boasts a stellar earnings record, having delivered a positive surprise in all the trailing four quarters, the average being 8.6%.
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:
Change Healthcare Inc. has an Earnings ESP of +1.83% and a Zacks Rank of 1. The company is set to report fourth-quarter earnings on Feb 12.
Clovis Oncology, Inc. has an Earnings ESP of +3.56% and a Zacks Rank #2. The company is set to report fourth-quarter earnings performance on Feb 24.
Tandem Diabetes Care, Inc. (TNDM - Free Report) is slated to release fourth-quarter financial figures on Feb 24. The stock has an Earnings ESP of +27.59% and is Zacks #1 Ranked.
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
See 5 Stocks Set to Double>>