- Centene has raised its 2025 premium and service revenues forecast to between $158.0 billion and $160.0 billion, up from the previous range of $154.0 billion to $156.0 billion.
- Adjusted EPS for the fourth quarter rose to 80 cents from 45 cents year-over-year (y/y), surpassing the 49 cents estimate.
- Total revenue for the fourth quarter was $40.81 billion, marking a 3.4% increase y/y, above the estimated $39.35 billion.
- Medicaid revenue fell by 1.4% y/y, totaling $20.83 billion.
- Commercial revenue increased by 18% y/y, reaching $8.72 billion, exceeding the $8.42 billion estimate.
- Medicare revenue rose by 3.5% y/y to $5.48 billion, slightly below the estimate of $5.52 billion.
- Other revenue dropped by 17% y/y to $1.27 billion, yet was slightly above the $1.2 billion estimate.
- The health benefits ratio was 89.6%, compared to 89.5% y/y, and was better than the estimated 90%.
- Managed care membership increased by 4.1% y/y, totaling 28.60 million, matching the estimated figure.
- Premium tax and health insurer fee reached $4.51 billion, a 9.4% increase y/y, surpassing the estimated $3.25 billion.
- Centene’s CEO, Sarah M. London, highlighted operational improvements and meeting financial commitments in 2024 despite industry challenges.
- Analyst ratings show 12 buy recommendations, 8 holds, and 1 sell recommendation.
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Centene Corp on Smartkarma
Analyst coverage of Centene Corp on Smartkarma, a platform where independent analysts publish their research, highlights positive sentiments towards the company’s operational efficiency and AI utilization. Baptista Research, a noted provider on Smartkarma, published a bullish report titled “Centene Corporation: Operational Efficiency & AI Utilization Driving Our Optimism! – Major Drivers.” In this report, Centene’s third-quarter financial results for 2024 were discussed, revealing a balanced performance indicating strengths along with ongoing operational challenges.
One key highlight was Centene’s achievement of an adjusted diluted EPS of $1.62, surpassing earlier expectations. This outperformance was attributed to the earlier realization of anticipated tax benefits and accelerated income tax benefits. The report by Baptista Research emphasizes the company’s strategic focus on leveraging operational efficiencies and advanced technologies such as AI, instilling optimism among analysts regarding Centene Corp‘s future growth potential.
A look at Centene Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 3 | |
| 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 from Smartkarma have provided an overview of Centene Corp‘s long-term outlook based on their Smart Scores. Centene Corp has scored high in key areas such as Growth, receiving a top score of 5. This indicates a positive outlook for the company’s future expansion and development prospects.
Additionally, Centene Corp has been rated well in terms of Value with a score of 4, reflecting a favorable assessment of the company’s stock in relation to its intrinsic value. However, the company’s Dividend score is lower at 1, suggesting that investors should not expect significant dividend payouts from Centene Corp. Furthermore, the company has received moderate scores in Resilience and Momentum, indicating a mixed performance in these areas.
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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