Centene Corporation Poised for Q4 Earnings: Growth Forecasts Look Promising
Centene Corporation (CNC), with a market cap of $31.9 billion, is a significant player in the healthcare industry. Based in Saint Louis, Missouri, the company focuses on government-sponsored healthcare programs, providing services primarily to underinsured and uninsured individuals. Centene’s innovative, member-centered approach is tailored to enhance care delivery in underserved communities. The company is set to announce its fiscal Q4 earnings on Tuesday, February 4.
Projected Earnings Show Year-Over-Year Growth
Analysts anticipate that Centene will report a profit of $0.49 per share, which represents an 8.9% increase from $0.45 per share during the same period last year. In recent quarters, CNC has successfully beaten Wall Street’s earnings expectations three out of four times, with a notable 16.6% margin above estimates in the latest quarter.
Positive Outlook for Fiscal 2024 and Beyond
For fiscal 2024, projections indicate that CNC will achieve an EPS of $6.81, reflecting a rise of nearly 2% compared to $6.68 in fiscal 2023. Analysts foresee further growth, estimating an EPS of $6.99 for fiscal 2025, which translates to a 2.6% year-over-year increase.
Stock Performance Compared to Market
Over the past year, Centene’s stock has decreased by 17.7%, trailing the S&P 500 Index’s ($SPX) impressive 24.4% gain and showing a slight decline compared to the Health Care Select Sector SPDR Fund’s (XLV) performance.
Recent Stock Surge and Investor Confidence
On October 25, shares of Centene rose by 4.2% following a strong Q3 2024 performance, highlighted by an adjusted EPS of $1.62 and revenue of $42 billion, surpassing expectations. Additionally, the company raised its 2024 guidance, predicting revenues between $159 billion and $161 billion and an adjusted EPS exceeding $6.80. Centene’s commitment to shareholder value is evident through its announcement of $1.2 billion in share repurchases for Q3 and an additional $380 million planned for October. The growth in the Commercial Marketplace and improved premium revenues have further bolstered investor confidence.
Analysts Maintain a Cautiously Optimistic View
The consensus among analysts regarding Centene stock is “Moderate Buy.” Out of 17 analysts covering CNC, 10 recommend a “Strong Buy,” six suggest a “Hold,” and one advises a “Moderate Sell.” This suggests a more favorable outlook compared to three months ago, when only eight analysts favored a “Strong Buy.” Currently, CNC is trading below the average analyst price target of $78.56.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart
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