Core Viewpoint - Humana's recent earnings report indicates a mixed performance, with adjusted earnings per share missing estimates while revenues showed growth. The company faces challenges from rising benefit costs and a decline in Medicare Advantage membership, but the CenterWell unit's strong performance provides some offset [2][3][4]. Financial Performance - Humana reported Q2 2025 adjusted earnings of $6.27 per share, missing the consensus estimate by 0.8%, and a year-over-year decrease of 9.9% [2]. - Adjusted revenues reached $32.4 billion, reflecting a 10.2% year-over-year increase and surpassing the consensus mark by 1.9% [2]. - Total operating expenses rose to $31.3 billion, a 10.2% increase year-over-year, driven by higher benefits and operating costs [6]. Operational Insights - Premiums improved by 9.1% year-over-year to $30.7 billion, exceeding estimates [4]. - Services revenues climbed 27.3% year-over-year to $1.4 billion, also beating consensus estimates [4]. - The benefit ratio deteriorated by 70 basis points year-over-year to 89.7%, influenced by higher benefit ratios from state-based contracts and a decline in Medicare Advantage membership [5]. Segment Performance - The Insurance segment recorded adjusted revenues of $31.1 billion, up 9.6% year-over-year, supported by improved Medicare premiums and an expanding customer base [7]. - CenterWell revenues increased by 11.9% year-over-year to $5.5 billion, benefiting from higher pharmacy and primary care revenues [9]. Financial Position - As of June 30, 2025, Humana had cash and cash equivalents of $4 billion, an 81.9% increase from the end of 2024 [11]. - Total assets rose to $50.4 billion, an 8.3% increase from the previous year [11]. - Long-term debt increased to $12.6 billion, up 12.9% from December 31, 2024 [11]. Future Outlook - Adjusted EPS for 2025 is forecasted at around $17.00, up from a previous estimate of $16.25, indicating a 4.9% rise from 2024 [14]. - Revenues are estimated to be a minimum of $128 billion, reflecting an 8.7% increase from 2024 [15]. - Individual Medicare Advantage membership is expected to decline by up to 500,000 in 2025, while group membership is anticipated to remain flat [16].

Core Viewpoint - UnitedHealth Group's recent earnings report showed a decline in adjusted EPS and operating earnings, primarily due to rising medical costs, despite a year-over-year revenue increase. The stock has outperformed the S&P 500 by 14.2% since the last earnings report, but analysts are concerned about the sustainability of this positive trend leading up to the next earnings release [1][2]. Financial Performance - UnitedHealth reported Q2 2025 adjusted EPS of $4.08, missing the Zacks Consensus Estimate of $4.84, and reflecting a 40% decline year over year [3]. - Revenues increased by 12.9% year over year to $111.6 billion, slightly beating the consensus mark by 0.1% [3]. - The company's premium revenue rose to $87.9 billion from $76.9 billion a year ago, surpassing the consensus estimate by 0.8% [5]. - Medical care ratio (MCR) was 89.4%, worsening by 430 basis points from the previous year and exceeding the consensus estimate of 88.6% [6]. - Total operating costs reached $106.5 billion, a 17% increase year over year, driven by higher medical costs [7]. Business Segment Performance - UnitedHealthcare's revenues grew 17% year over year to $86.1 billion, driven by domestic commercial membership growth, beating the consensus estimate of $84.8 billion [9]. - Optum's revenues were $67.2 billion, a 6.8% year-over-year increase, although it fell short of the consensus mark of $67.5 billion [10]. - Medical membership reached 50.1 million, a 2.1% increase year over year, but missed the consensus estimate of 50.3 million [11]. Financial Position - As of June 30, 2025, UnitedHealth had cash and short-term investments of $32 billion, up from $29.1 billion at the end of 2024 [13]. - Total assets increased to $308.6 billion from $298.3 billion at the end of 2024 [13]. - Long-term debt rose to $73.5 billion from $72.4 billion at the end of 2024 [13]. - Total equity increased to $100.5 billion from $98.3 billion at the end of 2024 [14]. - Operating cash flows surged to $7.2 billion in Q2 from $2.2 billion a year ago [14]. Capital Deployment - UnitedHealth returned $4.5 billion to shareholders through share repurchases and dividends in Q2, with a 5% increase in the quarterly dividend rate announced in June [15]. 2025 Outlook - Management revised the adjusted net EPS projection for 2025 to at least $16, down from a previous range of $26-$26.50, while net earnings are expected to be at least $14.6 billion [16]. - Revenue projections for 2025 are now between $445.5 billion and $448 billion, an increase from $400.3 billion in 2024 [16]. - Operating cash flows are projected to be $16 billion, down from $24.2 billion in 2024 [16]. Estimate Trends - There has been a downward trend in estimates, with the consensus estimate shifting down by 41.69% recently [17]. - UnitedHealth currently holds a Zacks Rank 5 (Strong Sell), indicating expectations of below-average returns in the coming months [19]. Industry Comparison - UnitedHealth is part of the Zacks Medical - HMOs industry, where competitor Centene reported a revenue increase of 22.4% year over year, highlighting contrasting performance within the sector [20].

Company Overview - Cigna (CI) is a health insurer headquartered in Bloomfield, operating in the Medical sector with a year-to-date stock price change of -3.17% [3] Dividend Information - Cigna currently pays a dividend of $1.51 per share, resulting in a dividend yield of 2.26%, which is significantly higher than the Medical - HMOs industry's yield of 0.74% and the S&P 500's yield of 1.48% [3] - The company's annualized dividend of $6.04 has increased by 7.9% from the previous year, with a total of five dividend increases over the last five years, averaging an annual increase of 81.54% [4] Earnings Growth - The Zacks Consensus Estimate for Cigna's earnings in 2025 is projected at $29.68 per share, indicating a year-over-year earnings growth rate of 8.60% [5] Investment Considerations - Cigna is positioned as a compelling investment opportunity due to its strong dividend profile and a Zacks Rank of 3 (Hold), making it attractive for income investors [6]

Core Viewpoint - Select Medical (SEM) reported quarterly earnings of $0.32 per share, exceeding the Zacks Consensus Estimate of $0.28 per share, but down from $0.6 per share a year ago, indicating a mixed performance in earnings [1][2] Financial Performance - The company achieved revenues of $1.34 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.50%, but down from $1.76 billion year-over-year [2] - Over the last four quarters, Select Medical has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - Select Medical shares have declined approximately 23.2% since the beginning of the year, contrasting with the S&P 500's gain of 8.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.20 on revenues of $1.32 billion, and for the current fiscal year, it is $1.14 on revenues of $5.37 billion [7] - The trend of estimate revisions for Select Medical was mixed ahead of the earnings release, which may change following the recent report [6] Industry Context - The Medical - HMOs industry, to which Select Medical belongs, is currently ranked in the bottom 5% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Cigna (CI) came out with quarterly earnings of $7.2 per share, beating the Zacks Consensus Estimate of $7.14 per share. This compares to earnings of $6.72 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +0.84%. A quarter ago, it was expected that this health insurer would post earnings of $6.39 per share when it actually produced earnings of $6.74, delivering a surprise of +5.48%.Over the last four quarters, the company has su ...

Core Viewpoint - UnitedHealth Group reported quarterly earnings of $4.08 per share, missing the Zacks Consensus Estimate of $4.84 per share, and down from $6.8 per share a year ago, indicating an earnings surprise of -15.70% [1][2] Financial Performance - The company posted revenues of $111.62 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.06%, and up from $98.86 billion year-over-year [2] - Over the last four quarters, UnitedHealth has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - UnitedHealth shares have declined approximately 44.2% since the beginning of the year, contrasting with the S&P 500's gain of 8.6% [3] - The current Zacks Rank for UnitedHealth is 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $4.93 on revenues of $113.13 billion, and for the current fiscal year, it is $21.15 on revenues of $448.53 billion [7] - The trend of estimate revisions for UnitedHealth was unfavorable prior to the earnings release, which may impact future stock movements [5][6] Industry Context - The Medical - HMOs industry, to which UnitedHealth belongs, is currently in the bottom 4% of the Zacks industry rankings, suggesting potential challenges ahead [8] - The performance of UnitedHealth's stock may be influenced by the overall outlook for the industry [8]

Centene (CNC) came out with a quarterly loss of $0.16 per share versus the Zacks Consensus Estimate of $0.68. This compares to earnings of $2.42 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -123.53%. A quarter ago, it was expected that this healthcare company would post earnings of $2.36 per share when it actually produced earnings of $2.9, delivering a surprise of +22.88%.Over the last four quarters, the company has surpas ...

UnitedHealth Group (UNH) ended the recent trading session at $278.58, demonstrating a -4.76% change from the preceding day's closing price. This change lagged the S&P 500's 0.07% gain on the day. On the other hand, the Dow registered a loss of 0.7%, and the technology-centric Nasdaq increased by 0.18%. The largest U.S. health insurer's shares have seen a decrease of 3.15% over the last month, not keeping up with the Medical sector's gain of 2.39% and the S&P 500's gain of 5.71%.The upcoming earnings release ...

Core Viewpoint - Molina's quarterly earnings of $5.48 per share missed the Zacks Consensus Estimate of $5.5 per share, representing a year-over-year decline from $5.86 per share [1] - The company reported revenues of $11.43 billion for the quarter, exceeding the Zacks Consensus Estimate by 5.43% and showing an increase from $9.88 billion a year ago [2] Financial Performance - The earnings surprise for the latest quarter was -0.36%, while the previous quarter saw a positive surprise of +3.75% with actual earnings of $6.08 against an expectation of $5.86 [1][2] - Over the last four quarters, Molina has surpassed consensus EPS estimates two times and revenue estimates three times [2] Stock Performance - Molina shares have declined approximately 37.9% since the beginning of the year, contrasting with the S&P 500's gain of 7.3% [3] - The current Zacks Rank for Molina is 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $5.93 on revenues of $10.9 billion, while the estimate for the current fiscal year is $22.08 on revenues of $44.06 billion [7] - The outlook for the Medical - HMOs industry is currently unfavorable, ranking in the bottom 4% of over 250 Zacks industries, which may impact Molina's stock performance [8]

Company Overview - Humana (HUM) is expected to report a year-over-year decline in earnings of 9.2%, with an estimated EPS of $6.32 for the quarter ended June 2025, while revenues are projected to increase by 8.2% to $31.78 billion [3][12] - The earnings report is scheduled for release on July 30, and the actual results will significantly influence the stock price depending on whether they meet or exceed expectations [2][12] Earnings Estimates and Trends - The consensus EPS estimate has been revised down by 0.14% over the last 30 days, indicating a slight reassessment by analysts [4] - Humana's Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +10.51%, suggesting a likelihood of beating the consensus EPS estimate [12] Historical Performance - In the last reported quarter, Humana exceeded the expected EPS of $9.98 by delivering $11.58, resulting in a surprise of +16.03% [13] - Over the past four quarters, Humana has consistently beaten consensus EPS estimates [14] Industry Context - UnitedHealth Group (UNH), another player in the Zacks Medical - HMOs industry, is expected to report a year-over-year EPS decline of 27.4%, with revenues projected at $111.6 billion, up 12.9% [18] - UnitedHealth's consensus EPS estimate has been revised down by 4.5% in the last 30 days, leading to a negative Earnings ESP of -13.1%, combined with a Zacks Rank of 4 (Sell), making it difficult to predict an earnings beat [19]