- Centene’s total revenue for the second quarter was $48.74 billion, which exceeded the estimated $44.27 billion, marking a 22% increase year-over-year.
- Medicaid revenue reached $21.72 billion, up 7.3% compared to the previous year.
- Commercial revenue grew by 18% to $10.07 billion, surpassing the expected $9.53 billion.
- Medicare revenue saw a significant rise of 58%, totaling $9.45 billion.
- Other revenue slightly increased by 1.2%, totaling $1.22 billion, though it fell short of the $1.27 billion estimate.
- The health benefits ratio increased to 93% from 87.6% year-over-year, missing the estimated 91.6%.
- Managed care membership decreased by 1.7% year-over-year to 28.00 million, but surpassed the estimate of 27.76 million.
- The premium tax and health insurer fee surged by 62% to $6.28 billion, notably higher than the $3.62 billion estimate.
- Centene’s CEO, Sarah M. London, expressed disappointment in the second quarter results but highlighted a commitment to addressing trends impacting performance.
- Despite challenges, the CEO remains optimistic about the resilience of Medicaid, Medicare, and the Individual Marketplace.
- Analyst recommendations for Centene include 6 buys, 15 holds, and 1 sell.
Centene Corp on Smartkarma
Centene Corp has garnered positive analyst coverage on Smartkarma, a respected independent investment research network. Baptista Research, known for its insightful analysis, has published two reports on Centene Corp.
In the report titled “Centene Corporation: Leveraging Clinical Initiatives & Operating Models To Change The Game!”, Baptista Research highlights Centene’s financial outcomes for the first quarter of 2025, emphasizing growth prospects and operational challenges. Centene achieved an adjusted diluted EPS of $2.90, in line with expectations.
Another report by Baptista Research, “Centene Corporation: Medicare Segment Growth Driving Our Bullishness!”, delves into the company’s performance in the fourth quarter of 2024. The report notes solid earnings power with adjusted diluted EPS of $0.80 and a full-year EPS of $7.17, attributed to strong performance in business lines such as Medicare and Medicaid.
A look at Centene Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.0 |
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 focusing on Medicaid programs, has received varying Smart Scores across different factors. With a top-notch score of 5 for Value, Centene is regarded as offering strong value proposition. This indicates that the company’s stock is potentially undervalued compared to its intrinsic value, making it an attractive investment based on this metric. The company also scored well in Growth, with a score of 4, suggesting promising growth prospects for Centene in the long term. Additionally, Resilience scored a 3, reflecting the company’s ability to withstand challenges and maintain stability in uncertain market conditions.
However, Centene received lower scores in Dividend and Momentum, with scores of 1 and 2 respectively. A low score in Dividend implies that Centene may not be a preferred choice for investors seeking regular dividend income. Momentum, with a score of 2, indicates that the company may not be experiencing significant positive price momentum at the moment. Overall, despite some mixed scores, Centene Corporation’s solid performance in Value, Growth, and Resilience aspects point towards a promising long-term outlook for the company in the managed care sector.
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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