Healthcare Q2 Earnings Lineup for Aug 3: HUM, CRL & More

We now have Q2 results from 317 S&P 500 members that combined account for 73.5% of the index’s total market capitalization per the latest Earnings Preview report. Total earnings for these companies are down 3.3% from the same period last year on 0.9% lower revenues. However, the beat ratio is pretty decent, with 72.9% beating EPS estimates and 53.6% coming ahead of top-line expectations.

Medical is one of the seven sectors in the S&P 500 group. So far, 63.5% of the total Medical sector has reported second-quarter results. The sector is expected to deliver 5.4% earnings growth on 10.5% higher revenues in the second quarter. This compares favorably with the projected decline for the S&P 500 index.

Healthcare is part of the broader medical sector.  Let’s see what factors might have influenced its performance in the second quarter.

Within the Healthcare sector, health insurers are expected to see top-line growth on an increase in member enrollment. The Government business which includes Medicare and Medicaid will likely see a surge in enrollment due to increased demand from the surging population of baby boomers. Also, ancillary businesses which are outside the purview of the Health Care Reform Act will likely see higher earnings.

While diversified product offerings and expansion into international markets are likely to have driven revenues, cost management should give the bottom line a boost.

However, healthcare companies continued to face pressure from pricing, regulatory compliance costs, rising medical costs and competition.

As another industry sub-segment providing biopharmaceutical development services, Healthcare is expected to see increased top-line growth as pharmaceutical companies continue to outsource clinical development and commercialization support activities. Moreover, increased use of technology and data assets globally will drive the performance of the players in this sub-segment.

Here, we take a sneak peek at four healthcare stocks scheduled to report their second-quarter figures on Aug 3:

Humana Inc. HUM operates as a health and well-being company. It offers Medicare and commercial fully insured medical and specialty health insurance benefits – including dental, vision and other supplemental health and financial protection products – directly to individuals. Last quarter, this insurer beat the estimate by 2.76%. In the upcoming release too, Humana is poised to deliver an earnings beat as it has the right combination of the two key ingredients – a positive Earnings ESP and a Zacks Rank of #3 (Hold) or better.

Specifically, Humana has an Earnings ESP of +0.44% and a Zacks Rank #2 (Buy). The Most Accurate estimate stands at $2.27, a penny above the Zacks Consensus Estimate.

The company delivered positive surprises in three of the last four quarters, with an average beat of 1.49%. (Read more:Humana May Beat Q2 Earnings: Will the Stock Gain?).

HUMANA INC NEW Price and EPS Surprise

HUMANA INC NEW Price and EPS Surprise | HUMANA INC NEW Quote

Charles River Laboratories International, Inc. CRL, an early-stage contract research company, provides drug discovery and preclinical development services worldwide. Last quarter, this company surpassed the estimate by 8.89%. Charles River Laboratories has an Earnings ESP of +0.91% and a Zacks Rank #3. The Most Accurate estimate stands at $1.11, above the Zacks Consensus Estimate of $1.10.

With respect to the surprise trend, the company delivered positive surprises in three of the last four quarters, with an average beat of 5.95%.

CHARLES RVR LAB Price and EPS Surprise

CHARLES RVR LAB Price and EPS Surprise | CHARLES RVR LAB Quote

Envision Healthcare Holdings, Inc. EVHC provides physician-led outsourced medical services to consumers, hospitals, healthcare systems, health plans and government entities in the United States. Last quarter, this company surpassed the estimate by 12.5%. Envision Healthcare Holdings has an Earnings ESP of 0.00% and a Zacks Rank #3. Both the Most Accurate estimate and the Zacks Consensus Estimate stand at 35 cents per share.

The company doesn’t have a convincing earnings surprise record. It missed the consensus estimate in two out of the past four reported quarters, with the average miss being 1.16%.

ENVISION HLTHCR Price and EPS Surprise

ENVISION HLTHCR Price and EPS Surprise | ENVISION HLTHCR Quote

PAREXEL International Corporation PRXL, a biopharmaceutical services company, provides clinical research, clinical logistics, medical communications, consulting, commercialization, and advanced technology products and services for pharmaceutical, biotechnology, and medical device industries worldwide.  Last quarter, this company posted earnings in line with the Zacks Consensus Estimate. PAREXEL International as an Earnings ESP of +2.17% and a Zacks Rank #3. The Most Accurate estimate stands at 94 cents per share, above the Zacks Consensus Estimate of 92 cents.

With respect to the surprise trend, the company delivered positive surprises in three of the last four quarters, with an average beat of 10.73%.

PAREXEL INTL CP Price and EPS Surprise

PAREXEL INTL CP Price and EPS Surprise | PAREXEL INTL CP Quote

Stay tuned! Check back on our full write-up on earnings releases of these stocks.

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HUMANA INC NEW (HUM): Free Stock Analysis Report
 
CHARLES RVR LAB (CRL): Free Stock Analysis Report
 
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