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Healthcare Stock Earnings Slated on Nov 6: HUM, ELAN & More

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The healthcare industry, which is part of the medical sector, is likely to have witnessed a favorable performance in the third quarter with rise in revenues and earnings. Performances are likely to have been driven by high demand from rising baby boomers for services and products offered by various players in the industry ranging from health insurers, hospitals, home healthcare, medical devices, drug companies and others.

The health insurance and hospital segment of the industry is relatively less prone to shocks from the ongoing trade war with China and the slowing down of global economy, given that almost whole or a substantial part of the business is domiciled within the United States. This inexposure might have shielded earnings for the industry players in the to-be-reported quarter.

Due to the employment picture being bright in the United States (unemployment is at its lowest level since 1969), the industry is likely to have witnessed continued demand for its products and services from employers who provide health benefits to their employees in the quarter under review.

Also, the need to provide cost-effective care at home, due to increasing health care cost, have driven the services of skilled nursing facilities and this trend is likely to have persisted in the third quarter.

According to the latest Earnings Preview, the medical sector is expected to witness earnings growth of 6.1% on revenue increase of 9.8%.

Let’s take a look at four healthcare stocks that are slated to report third-quarter 2019 results on Nov 6.

According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chance of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

On the last earnings call, Humana Inc. (HUM - Free Report) projected third-quarter adjusted EPS to be equal to 26% of 2019 earnings. This might be due to a negative impact of weekday seasonality and increased investments.

Moreover, specialty membership of the company is likely to have faced a decline. The Zacks Consensus Estimate for the same indicates a 3.7% dip from the year-earlier quarter reported figure.

However, the company’s performance is expected to have benefited from increasing revenues. Humana’s strong Medicaid and Medicare lines of businesses are likely to have aided its top line. Its Medicare line of business too might have witnessed growth on the back of higher members. (Read more: What's in the Offing for Humana's Earnings in Q3?).

Our proven model does not predict an earnings beat for Humana this time around, as the stock has a Zacks Rank #3 and an Earnings ESP of 0.00%.

You can see the complete list of today’s Zacks #1 Rank stocks here.

The stock has an attractive earnings surprise history, having surpassed estimates in each of the trailing four quarters, with an average positive surprise of 7.79%. This is shown in the chart below:

Humana Inc. Price and EPS Surprise

Elanco Animal Health Inc. (ELAN - Free Report) operates as an animal health care company. It develops, manufactures and markets products for companion and food animals.

Our proven model does not predict an earnings beat for Elanco Animal Health this time around. The stock has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%.

The stock has an attractive earnings surprise history, having surpassed estimates in each of the trailing four quarters, with an average positive surprise of 13.43%. This is shown in the chart below:

Elanco Animal Health Incorporated Price and EPS Surprise

Charles River Laboratories International, Inc. (CRL - Free Report) provides essential products and services to help pharmaceutical and biotechnology companies, government agencies and leading academic institutions around the globe accelerate their research and drug development efforts.

Our proven model does not predict an earnings beat for Charles River Laboratories this time around. The stock has a Zacks Rank #3 and an Earnings ESP of -0.31%.

The stock has an attractive earnings surprise history, having surpassed estimates in each of the trailing four quarters, with an average positive surprise of 6.17%. This is shown in the chart below:

Charles River Laboratories International, Inc. Price and EPS Surprise

LHC Group, Inc. serves as a post-acute care partner for hospitals, physicians and families in the United States. From home health and hospice care to long-term acute care and community-based services, LHC Group delivers high-quality, cost-effective care that helps patients manage their health at home.

Our proven model does not predict an earnings beat for LHC Group this time around. The stock has a Zacks Rank #3 and an Earnings ESP of 0.00%.

The stock has an attractive earnings surprise history, having surpassed estimates in three of the four reported quarters, with an average positive surprise of 4.24%. This is shown in the chart below:

LHC Group, Inc. Price and EPS Surprise

LHC Group, Inc. Price and EPS Surprise

LHC Group, Inc. price-eps-surprise | LHC Group, Inc. Quote

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