Centene's Earnings: A Preview

Centene CNC is gearing up to announce its quarterly earnings on Friday, 2025-04-25. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Centene will report an earnings per share (EPS) of $2.45.

Centene bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Performance in Previous Earnings

In the previous earnings release, the company beat EPS by $0.31, leading to a 0.91% drop in the share price the following trading session.

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

Stock Performance

Shares of Centene were trading at $62.12 as of April 23. Over the last 52-week period, shares are down 18.86%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.

Insights Shared by Analysts on Centene

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Centene.

Analysts have provided Centene with 3 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $68.33, suggesting a potential 10.0% 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.

• Analysts currently favor an Neutral trajectory for Molina Healthcare, with an average 1-year price target of $368.6, suggesting a potential 493.37% upside.
• Analysts currently favor an Outperform trajectory for HealthEquity, with an average 1-year price target of $111.11, suggesting a potential 78.86% upside.
• Analysts currently favor an Buy trajectory for Alignment Healthcare, with an average 1-year price target of $18.19, suggesting a potential 70.72% downside.

Summary of Peers Analysis

The peer analysis summary presents essential metrics for Molina Healthcare, HealthEquity and Alignment Healthcare, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Centene ranks in the middle among its peers for revenue growth, with one peer showing the highest growth. Centene's gross profit is the highest among its peers. However, its return on equity is lower compared to some peers. Overall, Centene's performance is solid but there is room for improvement in return on equity.

Unveiling the Story Behind Centene

Centene is a managed care organization that focuses on government-sponsored healthcare plans, including Medicaid, Medicare, and the individual exchanges. Centene served 22 million medical members as of December 2024, mostly in Medicaid (about 60% of membership), the individual exchanges (about 20%), and Medicare (about 5%). The company also has a military contract and provides Medicare Part D pharmaceutical plans.

Understanding the Numbers: Centene's Finances

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Centene displayed positive results in 3 months. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 3.41%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Health Care sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Centene's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 0.69%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 1.05%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Centene's ROA excels beyond industry benchmarks, reaching 0.34%. This signifies efficient management of assets and strong financial health.

Debt Management: Centene's debt-to-equity ratio is below the industry average. With a ratio of 0.74, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

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.