Earnings Preview: Humana EPS, Revenue Expected to Rise from Previous Quarter

Humana HUM releases its next round of earnings this Monday, August 1, 2011. Here's Benzinga's essential guide to Humana's second quarter earnings report.

Earnings and Revenue:

Based on estimates, investors are readying for a positive EPS reading of $2.07 per share and revenues of $9.32 billion. Whether the reported numbers beat or miss analysts' estimates, they will also be compared against last year's numbers for the same period, which were a profit of $2.11 per share on revenues of $8.65 billion. We'll have to wait for Monday to see if Humana reports a decline in EPS and a boost in revenue from the year-ago quarter, as analysts are predicting.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

At last check, shares of Humana were trading at $79.10. Shares are up 45% year to date. For a full 12 months, the return has risen by 52%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for Humana is a Moderate Buy. Over the past three months this rating's strength has declined slightly.

Competitors:

Looking for a sympathy stock to trade or interested in the performance of other companies in the same sector? Take a look at some of Humana's peers.

• Aetna AET: Moderate Buy with a $1.43 recent quarter EPS
• CIGNA CI: Hold with a $1.37 recent quarter EPS
• Health Net HNT: Hold with a $0.61 recent quarter EPS
• Triple-S Management (GTS): Hold with a $0.44 recent quarter EPS

The medical-HMO company's industry has seen price/earnings growth of 1.1% during the current fiscal year.

Finally, a description of the company's main areas of operation: Humana is a managed health care company that offers health and supplemental benefit products.

Take Action:

Now that you have reviewed all the numbers, be ready to move if the upcoming Humana earnings report has any surprises. Also, come back to Benzinga after the announcement for a full recap and a guide to your next steps.

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