- Centene has increased its full-year revenue forecast to a range between $178.5 billion and $181.5 billion, up from the previous range of $166.5 billion to $169.5 billion.
- Estimated revenue is projected at $172.54 billion.
- The company predicts its health benefits ratio will be between 88.9% and 89.5%, compared to an earlier range of 88.4% to 89% with an estimate of 88.8%.
- Premium and service revenues are anticipated to be between $164.0 billion and $166.0 billion, an increase from the previous range of $158.0 billion to $160.0 billion.
- For the first quarter, adjusted earnings per share (EPS) are $2.90, up from $2.26 year-over-year, surpassing the estimated $2.50.
- Quarterly revenue reached $46.62 billion, marking a 15% increase year-over-year, and exceeding the estimated $42.94 billion.
- Medicaid revenue showed a 3.9% increase year-over-year to $22.30 billion.
- Commercial revenue surged by 31% year-over-year to $10.15 billion, surpassing the estimate of $8.92 billion.
- Medicare revenue rose by 48% year-over-year to $8.76 billion.
- Other revenue increased by 7.6% year-over-year to $1.28 billion, above the estimated $1.23 billion.
- The health benefits ratio was recorded at 87.5%, compared to 87.1% year-over-year, matching the estimated 87.5%.
- Premium tax and health insurer fee increased by 1.5% year-over-year to $4.13 billion, surpassing the estimate of $3.29 billion.
- Analyst coverage includes 11 buys, 9 holds, and 1 sell recommendation.
Centene Corp on Smartkarma
Analysts on Smartkarma, such as Baptista Research, are closely following Centene Corp‘s progress. In a recent report titled “Centene Corporation: Medicare Segment Growth Driving Our Bullishness!”, Baptista Research highlighted the company’s robust financial performance in the fourth quarter of 2024. They noted solid earnings power, with adjusted diluted earnings per share of $0.80 and a full-year EPS of $7.17, attributing the growth to strong performance in Medicare and Medicaid segments.
Similarly, another report by Baptista Research titled “Centene Corporation: Operational Efficiency & AI Utilization Driving Our Optimism! – Major Drivers” discussed the company’s third-quarter financial results for 2024. The analysts noted a nuanced performance indicating strengths and ongoing challenges. Centene Corp exceeded expectations with an adjusted diluted EPS of $1.62, partly driven by early realization of tax benefits and accelerated income tax benefits. These independent analysts are optimistic about Centene Corp‘s future potential based on their detailed assessments.
A look at Centene Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Centene Corporation, a multi-line managed care organization known for providing Medicaid and related programs, appears to have a positive long-term outlook based on the Smartkarma Smart Scores. With a high Growth score of 5, Centene is positioned for strong expansion and development in the future. Additionally, the company scores well in terms of Value and Momentum, with scores of 4 in both categories, indicating solid financial value and positive market momentum.
Although Centene Corp may face challenges in terms of Dividend and Resilience, with scores of 1 and 3 respectively, the overall outlook for the company seems promising, especially considering its focus on health plans in multiple states and the provision of specialized services such as behavioral health and nurse triage.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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