Humana (HUM) Earnings Preview: Wall Street Expects a Decline, But Revenue Growth Remains Strong
Humana, a leading health insurance company, is gearing up to release its upcoming quarterly earnings report, and Wall Street analysts are closely watching. While the consensus forecast points to a decline in earnings per share, revenue is expected to show strong year-over-year growth. This preview delves into the key metrics that analysts are closely scrutinizing and provides insights into what investors can anticipate.
According to analysts’ estimates, Humana is projected to report earnings of $3.48 per share for the quarter, reflecting a significant 55.3% drop compared to the same period last year. However, revenue is forecasted to reach $28.66 billion, representing a robust 12.3% increase year-over-year.
It’s noteworthy that this current earnings per share (EPS) estimate reflects an upward revision of 1.4% over the past 30 days. This indicates that analysts covering the stock have collectively adjusted their initial projections upward, suggesting a potential for upside surprise.
Before a company releases its earnings, it’s crucial to consider any revisions made to earnings projections. These revisions serve as a vital gauge for understanding potential investor behavior toward the stock. Numerous studies have demonstrated a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors often rely on consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts’ projections for specific key metrics can provide valuable insights. Let’s delve deeper into these key metrics that Wall Street analysts are closely monitoring and projecting for Humana:
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Revenues- Premiums:
Analysts project ‘Revenues- Premiums’ to reach $27.28 billion, indicating an 8.7% increase from the previous year’s quarter.*
Revenues- Investment income (loss):
The consensus estimate for ‘Revenues- Investment income (loss)’ stands at $303.08 million, suggesting a modest 1.6% year-over-year decline.*
Revenues- Services:
Analysts anticipate ‘Revenues- Services’ to come in at $1.06 billion, reflecting a 4.5% increase from the same quarter last year.*
Revenue- CenterWell:
The consensus among analysts is that ‘Revenue- CenterWell’ will reach $4.84 billion, indicating a 3.8% increase from the year-ago quarter.*
Benefits Expense Ratio – Consolidated:
The average prediction of analysts places the ‘Benefits Expense Ratio – Consolidated’ at 90.0%, compared to 86.6% in the same quarter last year.*
Medical Membership – Group Medicare Advantage:
Analysts expect ‘Medical Membership – Group Medicare Advantage’ to reach 547.91 thousand, compared to 510.3 thousand in the previous year’s quarter.*
Medical Membership – Medicare stand-alone PDP:
The collective assessment of analysts points toward ‘Medical Membership – Medicare stand-alone PDP’ reaching 2,296.84 thousand, compared to 2.89 million in the same quarter last year.*
Medical Membership – Individual Medicare Advantage:
Analysts predict ‘Medical Membership – Individual Medicare Advantage’ to reach 5,613.68 thousand, compared to 5.37 million in the same quarter last year.*
Medical Membership – Total Medicare:
Analysts expect ‘Medical Membership – Total Medicare’ to come in at 8,458.44 thousand, compared to 8.77 million in the same quarter last year.*
Medical Membership- State-based contracts and other:
The combined assessment of analysts suggests that ‘Medical Membership- State-based contracts and other’ will likely reach 1,432.88 thousand, compared to 1.26 million in the previous year’s quarter.*
Medical Membership – Medicare Supplement:
Analysts predict that the ‘Medical Membership – Medicare Supplement’ will reach 334.07 thousand, compared to 299.4 thousand in the same quarter of the previous year.*
Medical Membership – Military services:
Analysts project that the ‘Medical Membership – Military services’ will reach 5,956.46 thousand, compared to 5.94 million in the same quarter last year.As Humana prepares to release its earnings report, investors will be closely analyzing these key metrics and the company’s performance against analysts’ projections. Stay tuned for further developments and insights following the release of the earnings report.
