Yahoo Finance Results: Humana AB (publ) Exceeded Expectations And The Consensus Has Updated Its Estimates
It's been a pretty great week for Humana AB (publ) (STO:HUM) shareholders, with its shares surging 13% to kr47.05 in the week since its latest quarterly results. It looks like a credible result overall - although revenues of kr1.9b were what the analysts expected, Humana surprised by delivering a (statutory) profit of kr1.00 per share, an impressive 27% above what was forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Humana after the latest results.
See our latest analysis for Humana
Following last week's earnings report, Humana's two analysts are forecasting 2020 revenues to be kr7.83b, approximately in line with the last 12 months. Statutory earnings per share are predicted to surge 27% to kr4.69. In the lead-up to this report, the analysts had been modelling revenues of kr7.85b and earnings per share (EPS) of kr4.60 in 2020. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
There were no changes to revenue or earnings estimates or the price target of kr67.00, suggesting that the company has met expectations in its recent result.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Humana's revenue growth will slow down substantially, with revenues next year expected to grow 2.0%, compared to a historical growth rate of 4.8% over the past three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.9% next year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Humana.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. The consensus price target held steady at kr67.00, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Humana going out as far as 2022, and you can see them free on our platform here.
It is also worth noting that we have found 2 warning signs for Humana (1 can't be ignored!) that you need to take into consideration.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
