- Centene has increased its forecast for full year revenue from a range of $142.5 billion – $145.5 billion to a range of $147.5 billion – $150.5 billion. The current estimate was $146.45 billion.
- The predicted premium and service revenues have also been adjusted, from previously seeing $134.5 billion – $137.5 billion to now forecasting $135.5 billion – $138.5 billion.
- The health benefits ratio is still expected to lie between 87.3% to 87.9%, in alignment with estimates.
- For the first quarter results, the adjusted EPS was $2.26, an increase from the previous year’s $2.11 and surpassing an estimate of $2.08.
- The revenue rose by 3.9% year-on-year to reach $40.41 billion, which was higher than the estimated $36.55 billion.
- Medicaid revenue went down by 3.5% year-on-year to reach $21.46 billion but still topped the estimate of $20.76 billion.
- There was a significant rise of 48% year-on-year in commercial revenue to reach $7.75 billion, surpassing the estimated $7.45 billion.
- Medicare revenue also increased by 1% year-on-year to $5.94 billion, beating the estimate of $5.34 billion.
- Other revenue experienced a decrease of 25% year-on-year to reach $1.19 billion, falling short of the estimate of $1.39 billion.
- The health benefits ratio was 87.1%, showing a slight increase from the previous year’s 87% and matching the estimate.
- Managed care membership saw a slight decrease of 0.1% year-on-year to 28.42 million.
- The premium tax and health insurer fee increased by 3.4% year-on-year to reach $4.07 billion, surpassing the estimate of $2.53 billion.
- The 2024 full year adjusted diluted EPS guidance has also been increased by $0.10 to more than $6.80.
- The current investor sentiment is positive, with 11 buys, 9 holds and 0 sells.
A look at Centene Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
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
Analysts at Smartkarma have given Centene Corp an overall positive outlook based on its Smart Scores. With high scores in key factors like Value, Growth, and Momentum, the company appears well-positioned for long-term success. Centene’s focus on providing managed care services, including Medicaid programs, coupled with specialty services, indicates a diversified business model with room for expansion.
However, the low score in Dividend and moderate score in Resilience may pose some challenges for investors looking for stable income and consistent performance during economic downturns. Despite these concerns, Centene Corp‘s strong performance in areas like Value and Growth suggests potential for continued growth and value appreciation in the future.
Centene Corporation, a multi-line managed care organization, stands out for its diverse range of services focused mainly on Medicaid and Medicaid-related programs. Operating health plans in multiple states and offering specialized services such as behavioral health and nurse triage, Centene demonstrates a commitment to comprehensive healthcare solutions.
With a solid overall outlook indicated by its Smart Scores, Centene Corp‘s strengths in Value, Growth, and Momentum underscore its potential for sustained growth and market competitiveness. Investors may find Centene an appealing choice for long-term investment opportunities in the healthcare 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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