Coventry Health Care Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Coventry Health Care, Inc. (NYSE:CVH) will unveil its latest earnings on Friday, October 28, 2011. 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 82 cents per share, a decline of 33.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 83 cents. Between one and three months ago, the average estimate moved down. It has risen from 81 cents during the last month. For the year, analysts are projecting profit of $2.99 per share, a decline of 19.2% 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 7 cents, reporting net income of 83 cents per share against a mean estimate of profit of 76 cents per share.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 6.7% in revenue from the year-earlier quarter to $3.03 billion.

Analyst Ratings: Analysts seem relatively indifferent about Coventry Health Care with nine of 17 analysts surveyed maintaining a hold rating.

A Look Back: In the second quarter, profit rose 21887.8% to $224.5 million ($1.51 a share) from $1 million (one cent a share) the year earlier, exceeding analyst expectations. Revenue rose 5.9% to $3.06 billion from $2.89 billion.

Key Stats:

The company has seen net income rise in three straight quarters. Net income rose 13.3% in the first quarter and 37.8% in the fourth quarter of the last fiscal year.

The company’s revenue has risen for two straight quarters. In the first quarter, the figure rose 6.6%.

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 October 18, 2011 to October 24, 2011, the stock price had risen $4.04 (14.4%) from $28.09 to $32.13. 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 $5.73 (+21.7%) year to date.

(Source: Xignite Financials)

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