Humana Inc.’s HUM first-quarter 2020 results are scheduled to be reported on Apr 29, 2020.
Factors to Impact Q1 Results
The to-be-reported quarter’s earnings report is likely to reflect better revenues.
The Zacks Consensus Estimate for earnings is pegged at $4.83, indicating an increase of 7.8% from the year-ago reported figure.
During the last earnings call, management expected the first quarter of 2020 to contribute to more than 24% of its annual earnings ($18.25-$18.75), accounting for $4.44, considering the midpoint.
The company’s top line is likely to have witnessed an upside in the first quarter owing to higher premiums and its strong Medicaid and Medicare lines of businesses. The consensus mark for the company’s total medical membership and total premiums suggests a hike of 2.7% and 14.3% from the respective year-ago reported figures.
Notably, the consensus mark for revenues of $18.4 billion hints at a 14.8% rise from the prior-year reported number.
The company is expected to have enjoyed healthy operating cash flow in the quarter to be reported, banking on excellent operating efficiency and solid working capital.
However, its specialty membership might have partially taken a hit from membership migration. The consensus mark for the same indicates a dip of 6.5% from the prior-year reported figure.
Humana’s first-quarter earnings performance might also reflect on escalating growth-related investments.
Additionally, total investment income for the to-be-reported quarter might have noticed a downtrend due to low investment yield. The consensus estimate for the same implies a 50.5% plunge from the year-ago reported figure.
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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Source: Nasdaq