Health Net Earnings Preview: Get Ahead of the Analysts

Health Net (NYSE:HNT) will report earnings before markets open on Thursday, July 25th. Health Net Inc. offers managed health care benefits and products. The Company provides group, individual, Medicare risk, Medicaid, and TRICARE programs. Health Net also offers managed health care products related to behavioral health, dental, vision, and prescription drugs, as well as offers managed health care product coordination and administrative services.

Here is your Cheat Sheet to Health Net Earnings:

Earnings Expectations: Analysts expect earnings of $0.51 per share on revenues of $2.74 billion. Currently, the company’s P/E ratio stands at 13.84.

Analyst Trends:

Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.6 to a profit $0.59. For the current year, the average estimate is a profit of $2.25, which is better than the estimate ninety days ago.

Earnings Trends:

Here’s how Health Net has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 15,367 15,713 13,620 11,901 11,289
Diluted EPS ($) 0.88 -0.47 2.06 0.80 1.46

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 2,841.34 2,779.57 2,826.80 2,797.04
Diluted EPS ($) 1.48 0.22 0.06 0.62

Past Performance:
Health Net has beat analyst estimates 2 times in the past four quarters. This is not consistent enough to get bullish yet.

“E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our successful CHEAT SHEET investing framework. Don’t waste another minute – click here to discover our CHEAT SHEET stock picks now!

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)