Humana Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Humana (NYSE:HUM) will unveil its latest earnings tomorrow, Monday, February 4, 2013. Humana is a managed health care company that offers health and supplemental benefit products.

Humana Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.08 per share, a decline of 3.6% 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 $1.28. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.08 during the last month. For the year, analysts are projecting net income of $7.53 per share, a decline of 3.7% from last year.

Past Earnings Performance: The company is looking to make a streak of three quarters of beating estimates. Last quarter, it beat expectations by reporting profit of $2.41 per share, and the previous quarter, it had net income of $2.34.

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Stock Price Performance: Between November 29, 2012 and January 29, 2013, the stock price had risen $8.79 (13.4%), from $65.73 to $74.52. The stock price saw one of its best stretches over the last year between March 22, 2012 and March 30, 2012, when shares rose for seven straight days, increasing 8.4% (+$7.18) over that span. It saw one of its worst periods between May 10, 2012 and May 18, 2012 when shares fell for seven straight days, dropping 6.1% (-$4.87) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 7.3% in revenue from the year-earlier quarter to $9.72 billion.

A Look Back: In the third quarter, profit fell 4.2% to $426 million ($2.62 a share) from $444.8 million ($2.67 a share) the year earlier, but exceeded analyst expectations. Revenue rose 3.8% to $9.65 billion from $9.3 billion.

Here’s how Humana traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

hum

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 8.5% in the fourth quarter of the last fiscal year, 11.2% in the first quarter and 4.5% in the second quarter before increasing again in the third quarter.

After experiencing income drops the past three quarters, the company is hoping to use this earnings announcement to rebound. Net income fell 21.3% in the first quarter, by 22.7% in the second quarter and again in the third quarter.

Analyst Ratings: With 15 analysts rating the stock a buy, none rating it a sell and seven rating the stock a hold, there are indications of a bullish stance by analysts.

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