Coventry Health Care, Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Coventry Health Care, Inc. (NYSE:CVH) will unveil its latest earnings on Friday, July 29, 2011. Coventry Health Care, Inc. 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 76 cents per share, a decline of 24.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 74 cents. For the year, analysts are projecting profit of $2.96 per share, a decline of 20% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 13 cents, reporting net income of 66 cents per share against a mean estimate of profit of 53 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $3.01 billion in revenue this quarter, a rise of 4.9% from the year ago quarter. Analysts are forecasting total revenue of $12.16 billion for the year, a rise of 4.9% from last year’s revenue of $11.59 billion.

Analyst Ratings: Analysts seem relatively indifferent about Coventry Health Care with 10 of 18 analysts surveyed maintaining a hold rating.

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 13.3% while it rose 37.8% in the fourth quarter of the last fiscal year and more than twofold in the third quarter of the last fiscal year.

A year-over-year revenue increase in the first quarter snaps a streak of three consecutive quarters of revenue declines. Revenue rose 6.6% in the first quarter and fell 11.7% in the fourth quarter of the last fiscal year, 17.5% in the third quarter of the last fiscal year and 19.1% in the second quarter of the last fiscal year.

Competitors to Watch: UnitedHealth Group Inc. (NYSE:UNH), Aetna Inc. (NYSE:AET), Health Net, Inc. (NYSE:HNT), WellCare Health Plans, Inc. (NYSE:WCG), Universal American Corp. (NYSE:UAM), WellPoint, Inc. (NYSE:WLP), CIGNA Corporation (NYSE:CI), Humana Inc. (NYSE:HUM), Centene Corporation (NYSE:CNC), and Magellan Health Services, Inc. (NASDAQ:MGLN).

Stock Price Performance: During May 26, 2011 to July 25, 2011, the stock price had risen $1.84 (5.4%) from $34.12 to $35.96. 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 May 31, 2011 and June 7, 2011 when shares fell for six-straight days, falling 4.9% (-$1.73) over that span. Shares are up $9.56 (+36.2%) year to date.

(Source: Xignite Financials)

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