Coventry Health Care Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Coventry Health Care (NYSE:CVH) will unveil its latest earnings on Friday, October 26, 2012. Coventry Health Care operates health plans, insurance companies, network rental, and workers’ compensation services companies.

Coventry Health Care Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 72 cents per share, a decline of 14.3% 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 73 cents. Between one and three months ago, the average estimate moved down. It has risen from 71 cents during the last month. For the year, analysts are projecting net income of $2.74 per share, a decline of 4.5% from last year.

Past Earnings Performance: Last quarter, the company topped expectations by 4 cents, coming in at profit of 68 cents per share versus a mean estimate of net income of 64 cents per share. This followed two straight quarters of missing estimates.

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now

A Look Back: In the second quarter, profit fell 59.1% to $91.7 million (65 cents a share) from $224.5 million ($1.51 a share) the year earlier, but exceeded analyst expectations. Revenue rose 16.1% to $3.55 billion from $3.06 billion.

Stock Price Performance: Between July 27, 2012 and October 22, 2012, the stock price rose $9.80 (28.8%), from $34.07 to $43.87. The stock price saw one of its best stretches over the last year between February 8, 2012 and February 17, 2012, when shares rose for eight straight days, increasing 7.9% (+$2.42) over that span. It saw one of its worst periods between June 22, 2012 and July 6, 2012 when shares fell for 10 straight days, dropping 10.8% (-$3.68) over that span.

Wall St. Revenue Expectations: Analysts are projecting a rise of 17.4% in revenue from the year-earlier quarter to $3.5 billion.

Key Stats:

The company is hoping to rebound with this earnings release after a net income drop last quarter. Net income rose 54.9% in the first quarter before dropping in the second quarter.

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 21.1% in the first quarter before climbing again in the second quarter.

Analyst Ratings: There are mostly holds on the stock with 13 of 14 analysts surveyed giving that rating.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

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

Don’t Miss These Additional Hot Stories:

Here’s Why Pharma Stocks are in Play

Tesla Motors: Is It Time to Buy Into the EV Revolution?

Apple Earnings Sneak Peek