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Healthcare Stock Earnings Slated on Oct 29: HCA, MOH & More

Zacks Equity Research

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, 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, 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.

According to our latest Earnings Preview , the medical sector is expected to witness earnings growth of 1.4% on revenue increase of 5.9%.

Let’s take a look at four healthcare stocks that are slated to report third-quarter 2019 results on Oct 29.

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.

HCA Healthcare, Inc. HCA performance is likely to have gained from higher salaries and benefits, supplies, and other operating costs. Higher expenses might have weighed on the company’s margin.

The company’s leverage might have also remained at elevated levels in the to-be-reported quarter as it incurs debt to finance its acquisitions.

However, this downside is expected to have been partially offset by increased admissions, licensed beds, number of hospitals, etc., which in turn, might have led to improved revenues. The Zacks Consensus Estimate for the licensed number of beds is pegged at 48.6 million, indicating 3.1% improvement from the prior-year reported figure. (Read more: HCA Healthcare to Post Q3 Earnings: What to Expect).

Our proven model does not predict an earnings beat for HCA Healthcare this time around. HCA Healthcare has a Zacks Rank #2 and an Earnings ESP of 0.00%.

HCA Healthcare, Inc. Price and EPS Surprise

HCA Healthcare, Inc. Price and EPS Surprise

HCA Healthcare, Inc. price-eps-surprise | HCA Healthcare, Inc. Quote

Molina Healthcare Inc. MOH is a multi-state managed care organization participating exclusively in government-sponsored healthcare programs such as the Medicaid program and the State Children's Health Insurance Program (SCHIP), catering to low-income persons.

Our proven model predicts an earnings beat for Molina Healthcare this season. The stock has an Earnings ESP of +0.92% and a Zacks Rank of 3.

Molina Healthcare, Inc Price and EPS Surprise

Molina Healthcare, Inc Price and EPS Surprise

Molina Healthcare, Inc price-eps-surprise | Molina Healthcare, Inc Quote

Chemed Corporation CHE via its The VITAS Healthcare segment provides hospice and palliative care services to patients with terminal illnesses. Its Roto-Rooter provides plumbing and drain-cleaning services to both residential and commercial customers.

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

Chemed Corporation Price and EPS Surprise

Chemed Corporation Price and EPS Surprise

Chemed Corporation price-eps-surprise | Chemed Corporation Quote

Amedisys Inc. AMED provides home health and hospice services throughout the United States to the growing chronic, co-morbid, and aging American population. The company also offers clinically focused programs for chronic conditions and various diseases.

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

Amedisys, Inc. Price and EPS Surprise

Amedisys, Inc. Price and EPS Surprise

Amedisys, Inc. price-eps-surprise | Amedisys, Inc. Quote

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