The upcoming report from Humana (HUM) is expected to reveal quarterly earnings of $9.98 per share, indicating an increase of 38% compared to the year-ago period. Analysts forecast revenues of $32.22 billion, representing an increase of 9.8% year over year.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 3.4% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
With that in mind, let's delve into the average projections of some Humana metrics that are commonly tracked and projected by analysts on Wall Street.
The collective assessment of analysts points to an estimated 'Revenues- Premiums' of $30.68 billion. The estimate suggests a change of +8.6% year over year.
Analysts' assessment points toward 'Revenues- Services' reaching $1.20 billion. The estimate suggests a change of +12.8% year over year.
Analysts expect 'Revenues- Investment income (loss)' to come in at $275.11 million. The estimate suggests a change of -4.5% year over year.
Analysts forecast 'Revenue- Insurance' to reach $31.15 billion. The estimate points to a change of +8.5% from the year-ago quarter.
It is projected by analysts that the 'Benefits Expense Ratio - Consolidated' will reach 87.7%. The estimate compares to the year-ago value of 88.9%.
The combined assessment of analysts suggests that 'Medical Membership - Medicare stand-alone PDP' will likely reach 2.45 million. Compared to the current estimate, the company reported 2.35 million in the same quarter of the previous year.
Based on the collective assessment of analysts, 'Medical Membership- State-based contracts and other' should arrive at 1.5 million. Compared to the current estimate, the company reported 1.26 million in the same quarter of the previous year.
The consensus among analysts is that 'Medical Membership - Group Medicare Advantage' will reach 557.22 thousand. The estimate compares to the year-ago value of 551.5 thousand.
The average prediction of analysts places 'Medical Membership - Medicare Supplement' at 375.88 thousand. The estimate compares to the year-ago value of 323.2 thousand.
The consensus estimate for 'Medical Membership - Individual Medicare Advantage' stands at 5.2 million. The estimate compares to the year-ago value of 5.55 million.
Analysts predict that the 'Medical Membership - Total Medicare' will reach 8.21 million. The estimate is in contrast to the year-ago figure of 8.45 million.
According to the collective judgment of analysts, 'Medical Membership - Military services' should come in at 5.32 million. Compared to the present estimate, the company reported 5.96 million in the same quarter last year.
View all Key Company Metrics for Humana here>>>
Shares of Humana have demonstrated returns of -0.1% over the past month compared to the Zacks S&P 500 composite's -4.3% change. With a Zacks Rank #3 (Hold), HUM is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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Humana Inc. (HUM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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