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Market Overview

Earnings Preview: Anthem


On Wednesday, July 21, Anthem (NYSE:ANTM) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street expects EPS of $6.33 and sales around $33.21 billion. In the same quarter last year, Anthem reported EPS of $9.2 on revenue of $29.18 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release.
When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Wednesday, earnings would be down 31.2%. Revenue would be have grown 13.82% from the same quarter last year. Anthem's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q1 2021 Q4 2020 Q3 2020 Q2 2020
EPS Estimate 6.51 2.52 4.15 8.87
EPS Actual 7.01 2.54 4.20 9.20
Revenue Estimate 32.94 B 30.78 B 29.75 B 29.25 B
Revenue Actual 32.10 B 31.53 B 30.65 B 29.18 B

eps graph

Stock Performance

Shares of Anthem were trading at $384.44 as of July 19. Over the last 52-week period, shares are up 45.32%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Anthem is scheduled to hold the call at 08:30:00 ET and can be accessed here.


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Posted-In: BZI-EPEarnings