Humana Inc.âs HUM fourth-quarter
2018 results are scheduled to be reported on Feb 6. In the last
reported quarter, the company came up with a positive surprise of
6.8%, led by Medicare Advantage membership growth, lower impatient
medical utilization, a favorable prior-period medical claims
reserve development and its significant operating efficiency.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged
at $2.53, up 22.8% year over year.
Q4 Expectations
The companyâs top line is likely to gain on the back of increase in
contribution from Medicare Advantage. The consensus mark for the
its revenues stands at $13.9 billion, up 5.6% year over year. This
upside can be attributed to strong segmental performances at the
Group and Specialty segment, Retails segments and Medicare
Advantage business.
The consensus mark for Total Medicare premiums from the Retail
segment stands at $11.2 billion, up 11.2% year over year.
Moreover, Humanaâs net investment income is likely to have
witnessed an improvement in the to-be-reported quarter. The Zacks
Consensus Estimate for the same is pegged at $30.13 million, up
67.4% year over year.
In the fourth quarter of 2018, the company is expected to have
witnessed a robust balance sheet with free cash flow. However, the
companyâs expenses are likely to rise due to growth-related
costs.
What the Quantitative Model States
Our proven model doesnât conclusively show that Humana is likely to
beat on earnings this to-be-reported quarter. This is because the
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) for this to happen.
Earnings ESP: Humana has an Earnings ESP of
-0.40%. This is because the Most Accurate Estimate is pegged at
$2.52, lower than the Zacks Consensus Estimate of $2.53. You can
uncover the best stocks to buy or sell before they are reported
with our Earnings ESP Filter.
Humana Inc. Price and EPS Surprise
Humana Inc. Price and EPS Surprise | Humana Inc. Quote
Zacks Rank: Humana sports a Zacks Rank of 1, which increases the predictive power of ESP. However, the stockâs negative ESP leaves surprise prediction inconclusive as the company needs a positive ESP along with a top Zacks Rank to raise the odds of a likely earnings surprise. You can see the complete list of todayâs Zacks #1 Rank stocks here.
We caution against the Sell-rated stocks (#4 or
5) going into the earnings announcement, especially when the
company is seeing negative estimate revisions.
Upcoming Releases From Medical Sector
Some stocks worth considering from the medical sector are as
follows:
Molina Healthcare, Inc MOH is set to report fourth-quarter 2018
earnings performance on Feb 11. The stock has an Earnings ESP of
+2.89% and is a Zacks #1 Ranked player.
Tenet Healthcare Corporation THC is slated to report fourth-quarter
earnings on Feb 25. It has a Zacks Rank #3 and an Earnings ESP of
+5.63%.
AxoGen, Inc. AXGN has an Earnings ESP of +14.29%. This Zacks #3
Ranked company is scheduled to release fourth-quarter earnings on
Feb 27.
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