Centene Corporation Set to Release First-Quarter Earnings Soon

Saint Louis, Missouri-based Centene Corporation (CNC) serves as a significant player in the healthcare sector, offering programs and services to underinsured and uninsured families, along with commercial and military organizations. The company, boasting a market capitalization of $31.7 billion, operates through various segments, including Medicaid, Medicare, Commercial, and Other services.

On Friday, April 25, before the markets open, Centene plans to announce its first-quarter financial results. Analysts anticipate that CNC will report a non-GAAP profit of $2.32 per share, reflecting a 2.7% increase from the $2.26 per share reported in the same quarter last year. Although the company missed analysts’ bottom-line estimates once in the past four quarters, it has successfully exceeded their expectations on three other occasions.

Looking ahead to the entire fiscal year of 2025, CNC is projected to report a non-GAAP EPS of $7.03, representing a decline of nearly 2% from the $7.17 reported in fiscal 2024. Conversely, in fiscal 2026, expectations emerge for a rebound, with earnings anticipated to climb 9.1% year-over-year to $7.67 per share.

Over the past year, CNC stock has declined nearly 10.9%, markedly underperforming against the S&P 500 Index, which has gained 3.2%, and the Health Care Select Sector SPDR Fund, which fell by 2.9% during the same period.

Despite releasing better-than-expected fourth-quarter financials on February 4, Centene’s stock fell by 5.5%. The company exhibited strong growth in premiums, leading to a year-over-year increase of 3.4% in overall revenue, reaching $40.8 billion, which also exceeded analysts’ forecasts. Furthermore, the non-GAAP EPS jumped 77.8% year-over-year to $0.80, surpassing consensus estimates by an impressive 63.3%. According to management’s guidance, Centene’s premium and service revenues are projected to range between $158 billion and $160 billion for fiscal 2025, a notable rise from $145.5 billion in fiscal 2024.

However, the financial performance in terms of cash flow has not been as strong. Centene recorded an operating cash outflow of $587 million in the fourth quarter, leading to a drastic drop in full-year operating cash flows, which were $154 million, compared to $8.1 billion in fiscal 2023.

Nonetheless, the overall sentiment regarding CNC stock remains positive, with an overall “Moderate Buy” rating. Among the 18 analysts monitoring the stock, nine recommend a “Strong Buy” and nine suggest a “Hold.” The mean price target of $78.09 indicates a potential 22.3% upside from current price levels.

On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) positions in any securities mentioned in this article. All information provided herein is for informational purposes only. For further details, please view the Barchart Disclosure Policy here.

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