Health insurance company Humana (NYSE: HUM) will be reporting earnings this Wednesday before the bell. Here’s what to look for.
Humana beat analysts’ revenue expectations last quarter, reporting revenues of $32.64 billion, up 11.8% year on year. It was a slower quarter for the company, with a significant miss of analysts’ full-year EPS guidance estimates. It added 7,500 customers to reach a total of 15 million.
Is Humana a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Humana’s revenue to grow 22.9% year on year, improving from the 9.5% increase it recorded in the same quarter last year.
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.
Looking at Humana’s peers in the health insurance providers segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Elevance Health delivered year-on-year revenue growth of 1.5%, beating analysts’ expectations by 2.4%, and UnitedHealth reported revenues up 2%, topping estimates by 1.7%. Elevance Health traded up 5.5% following the results while UnitedHealth was also up 9.3%.
Read our full analysis of Elevance Health’s results here and UnitedHealth’s results here.
There has been positive sentiment among investors in the health insurance providers segment, with share prices up 11% on average over the last month. Humana is up 34.1% during the same time and is heading into earnings with an average analyst price target of $210.46 (compared to the current share price of $222.59).
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