Health insurance company Humana (NYSE: HUM) will be announcing earnings results this Wednesday morning. Here’s what you need to know.
Humana met analysts’ revenue expectations last quarter, reporting revenues of $32.11 billion, up 8.4% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EPS estimates but a significant miss of analysts’ customer base estimates. It lost -1.51 million customers and ended up with a total of 14.84 million.
Is Humana a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Humana’s revenue to grow 7.8% year on year to $31.86 billion, slowing from the 10.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $5.87 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Humana has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2% on average.
Looking at Humana’s peers in the health insurance providers segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Centene delivered year-on-year revenue growth of 22.4%, beating analysts’ expectations by 11.6%, and Molina Healthcare reported revenues up 15.7%, topping estimates by 4.4%. Centene’s stock price was unchanged after the resultswhile Molina Healthcare was down 16.9%.
Read our full analysis of Centene’s results here and Molina Healthcare’s results here.
Investors in the health insurance providers segment have had steady hands going into earnings, with share prices flat over the last month. Humana is down 4.9% during the same time and is heading into earnings with an average analyst price target of $285.36 (compared to the current share price of $232.40).
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