| Will Health Net (HNT) Earnings Pull a Surprise This Season? - Analyst Blog | |
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Health Net, Inc. HNT is set to report second-quarter 2015 earnings results on Aug 4, 2015. Last quarter, it posted a 14.49% positive earnings surprise. Let's see how things are shaping up for this announcement.
Factors Affecting the Past Quarter
Health Net continuously launches new programs and services to reach out to more customers. This is expected to boost revenues, thereby aiding bottom-line growth. Particularly, the agreement with Centura Health to provide veterans with greater access to high-value medical care is expected to fetch increased revenues for the company. Moreover, the TRICARE contract extension should help the company to continue providing TRICARE beneficiaries access to health care services till Mar 2016. This should, in turn, make a strong base for revenue generation. Also, the rollout of palliative care programs in California and Oregon should boost the bottom line. Additionally, strong capital deployment efforts are expected to lower the share count and, hence, bolster earnings per share.
However, the rate of customer attrition in health plans, a weak government contracts segment and adverse effects of the Affordable Care Act are likely to weigh on the company’s financials to some extent.
Earnings Whispers
Our proven model does not conclusively show that Health Net is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for this to happen. That is not the case here as you will see below.
Zacks ESP: Health Net has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 88 cents per share.
Zacks Rank: Health Net carries a Zacks Rank #3 (Hold), which increases the predictive power of ESP. However, when combined with a 0.00% ESP, a surprise prediction becomes difficult.
We caution against Sell-rated stocks (Zacks Rank #4 and 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some stocks in the health care space which, according to our model, have the right combination of elements to post an earnings beat this quarter:
HCA Holdings, Inc. HCA has an Earnings ESP of +1.48% and a Zacks Rank #2 (Buy).
Myriad Genetics Inc. MYGN has an Earnings ESP of +2.44% and a Zacks Rank #3.
Halyard Health, Inc. HYH has an Earnings ESP of +3.70% and a Zacks Rank #3. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MYRIAD GENETICS (MYGN): Free Stock Analysis Report HEALTH NET INC (HNT): Free Stock Analysis Report HCA HOLDINGS (HCA): Free Stock Analysis Report HALYARD HEALTH (HYH): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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Myriad Genetics is based in United states of america. Myriad Genetics is listed in United States of America. Its market capitalisation is US$ 1.3 billions as of today (€ 1.2 billions). Its stock quote reached its lowest recent point on May 29, 1998 at US$ 10.00, and its highest recent level on November 17, 2000 at US$ 94.06. Myriad Genetics has 68 090 000 shares outstanding. |