Coventry Health Care Inc. Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Coventry Health Care, Inc. (NYSE:CVH) will unveil its latest earnings on Wednesday, February 8, 2012. Coventry Health Care operates health plans, insurance companies, network rental, and workers’ compensation services companies.

Coventry Health Care, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 64 cents per share, a decline of 33.3% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. For the year, analysts are projecting profit of $2.93 per share, a decline of 20.8% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 3 cents, coming in at net income of 84 cents a share versus the estimate of profit of 81 cents a share. It marked the fourth straight quarter of beating estimates.

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Wall St. Revenue Expectations: On average, analysts predict $3.09 billion in revenue this quarter, a rise of 2% from the year ago quarter. Analysts are forecasting total revenue of $12.14 billion for the year, a rise of 4.7% from last year’s revenue of $11.59 billion.

Analyst Ratings: Analysts are bullish on Coventry Health Care as eight analysts rate it as a buy, two rate it as a sell and seven rate it as a hold.

A Look Back: In the third quarter, profit fell 35.4% to $122.7 million (84 cents a share) from $189.9 million ($1.29 a share) the year earlier, but exceeded analyst expectations. Revenue rose 5% to $3 billion from $2.86 billion.

Key Stats:

Revenue has gone up for three straight quarters. It rose 5.9% in the second quarter from the year earlier and 6.6% in the first quarter.

Stock Price Performance: During January 27, 2012 to February 2, 2012, the stock price had risen $1.33 (4.5%) from $29.73 to $31.06. The stock price saw one of its best stretches over the last year between May 4, 2011 and May 16, 2011 when shares rose for nine-straight days, rising 7.1% (+$2.30) over that span. It saw one of its worst periods between November 11, 2011 and November 23, 2011 when shares fell for nine-straight days, falling 10.6% (-$3.48) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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