What To Expect From Anthem (ANTM) This Earnings Season?
Zacks Investment Research | Jul 23, 2017 09:20PM ET
Anthem Inc. (NYSE:ANTM) will release second-quarter 2017 results on Jul 26, before the market opens.
Last quarter, the company pulled off a positive earnings surprise of 21.56%. Let’s see how things are shaping up for this announcement.
Factors to be Considered this Quarter
Anthem is likely to witness an increase in its overall enrollment, primarily backed by substantial medical enrollment growth.
Solid revenue growth is expected in both of its Government Business and Commercial Business, backed by strong enrollment growth.
The Iowa Medicaid contract is likely to have boosted the company’s top line significantly.
Medicare Advantage product offerings might have supported Medicare enrollment growth, again boosting the company’s top-line.
However, Anthem expects to witness higher medical costs for individual ACA-compliant products, as was the case last quarter.
In addition, the company is also likely to have experienced higher benefit expense ratio from its Medicaid business due to higher claims.
Administrative costs might have risen during the second quarter, continuing the previous quarter’s trend.
Earnings Whispers
Our proven model does not conclusively show that Anthem is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP Filter .
Zacks Rank:Anthem currently sports a Zacks Rank #1. Though a favorable Zacks Rank increases the predictive power of ESP, we need a positive Earnings ESP to be confident about an earnings beat.
Anthem, Inc. Price and EPS Surprise
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Pfizer, Inc. (NYSE:PFE) has an Earnings ESP of +1.54% and a Zacks Rank #3. The company is set to report second-quarter earnings on Aug 1.
Humana, Inc. (NYSE:HUM) has an Earnings ESP of +1.3% and a Zacks Rank #3. The company is set to report second-quarter earnings on Aug 2.
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