Earnings Outlook For Centene

Centene CNC is set to give its latest quarterly earnings report on Friday, 2024-10-25. Here's what investors need to know before the announcement.

Analysts estimate that Centene will report an earnings per share (EPS) of $1.42.

Investors in Centene are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Earnings History Snapshot

During the last quarter, the company reported an EPS beat by $0.35, leading to a 0.0% drop in the share price on the subsequent day.

Here's a look at Centene's past performance and the resulting price change:

Performance of Centene Shares

Shares of Centene were trading at $59.82 as of October 23. Over the last 52-week period, shares are down 7.51%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Analysts' Take on Centene

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Centene.

Analysts have given Centene a total of 12 ratings, with the consensus rating being Outperform. The average one-year price target is $90.67, indicating a potential 51.57% upside.

Analyzing Ratings Among Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Molina Healthcare, HealthEquity and Alignment Healthcare, three key industry players, offering insights into their relative performance expectations and market positioning.

• As per analysts' assessments, Molina Healthcare is favoring an Outperform trajectory, with an average 1-year price target of $377.14, suggesting a potential 530.46% upside.
• The consensus outlook from analysts is an Outperform trajectory for HealthEquity, with an average 1-year price target of $102.14, indicating a potential 70.75% upside.
• Analysts currently favor an Buy trajectory for Alignment Healthcare, with an average 1-year price target of $10.0, suggesting a potential 83.28% downside.

Peers Comparative Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for Molina Healthcare, HealthEquity and Alignment Healthcare, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Centene ranks in the middle for revenue growth among its peers. It has the highest gross profit margin. Centene's return on equity is lower than two peers but higher than one.

Discovering Centene: A Closer Look

Centene is a managed-care organization focused on government-sponsored healthcare plans, including Medicaid, Medicare, and the individual exchanges. Centene served 24 million medical members as of June 2023, mostly in Medicaid (67% of membership), the individual exchanges (14%), and Medicare Advantage (6%) plans. The company also serves traditional Medicare users with its Medicare Part D pharmaceutical program.

Centene's Economic Impact: An Analysis

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Centene's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 5.92%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Health Care sector.

Net Margin: Centene's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 2.88%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Centene's ROE stands out, surpassing industry averages. With an impressive ROE of 4.22%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Centene's ROA stands out, surpassing industry averages. With an impressive ROA of 1.38%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Centene's debt-to-equity ratio surpasses industry norms, standing at 0.64. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

To track all earnings releases for Centene visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.