Earnings Outlook For Centene
Centene (NYSE:CNC) is set to give its latest quarterly earnings report on Friday, 2025-07-25. Here's what investors need to know before the announcement.
Analysts estimate that Centene will report an earnings per share (EPS) of $0.41.
Anticipation surrounds Centene's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Performance in Previous Earnings
In the previous earnings release, the company beat EPS by $0.36, leading to a 0.0% drop in the share price the following trading session.
Here's a look at Centene's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 2.54 | 0.49 | 1.38 | 2.07 |
| EPS Actual | 2.90 | 0.80 | 1.62 | 2.42 |
| Price Change % | -6.0% | -1.0% | 4.0% | 8.0% |
Performance of Centene Shares
Shares of Centene were trading at $29.42 as of July 23. Over the last 52-week period, shares are down 60.68%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.
Analyst Opinions 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 16 ratings, with the consensus rating being Neutral. The average one-year price target is $49.62, indicating a potential 68.66% upside.
Analyzing Analyst Ratings Among Peers
The analysis below examines the analyst ratings and average 1-year price targets of Molina Healthcare, HealthEquity and Alignment Healthcare, three significant industry players, providing valuable 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 $321.38, suggesting a potential 992.39% upside.
- Analysts currently favor an Outperform trajectory for HealthEquity, with an average 1-year price target of $116.88, suggesting a potential 297.28% upside.
- Analysts currently favor an Neutral trajectory for Alignment Healthcare, with an average 1-year price target of $17.0, suggesting a potential 42.22% downside.
Summary of Peers Analysis
Within the peer analysis summary, vital metrics for Molina Healthcare, HealthEquity and Alignment Healthcare are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Centene | Neutral | 15.38% | $5.20B | 4.83% |
| Molina Healthcare | Neutral | 12.24% | $1.28B | 6.77% |
| HealthEquity | Outperform | 15.04% | $224.31M | 2.54% |
| Alignment Healthcare | Neutral | 47.46% | $106.03M | -8.76% |
Key Takeaway:
Centene ranks in the middle among its peers for revenue growth. It is at the bottom for gross profit and return on equity.
About 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.
Unraveling the Financial Story of Centene
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's remarkable performance in 3 months is evident. As of 31 March, 2025, the company achieved an impressive revenue growth rate of 15.38%. This signifies 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: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 2.81%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): Centene's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 4.83%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Centene's ROA excels beyond industry benchmarks, reaching 1.55%. This signifies efficient management of assets and strong financial health.
Debt Management: Centene's debt-to-equity ratio is below the industry average at 0.66, reflecting a lower dependency on debt financing and a more conservative financial approach.
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.
