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With a market cap of $36.2 billion, Centene Corporation (CNC) is a multinational healthcare company specializing in government-sponsored healthcare programs and services for under-insured and uninsured individuals. Based in Saint Louis, Missouri, the company is expected to release its fiscal Q2 earnings results before the market opens on Friday, Jul. 26.
Ahead of this event, analysts expect CNC to report a profit of $1.91 per share, down 9.1% from $2.10 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in each of the last four quarterly reports. In the most recent quarter, the company exceeded the consensus EPS estimate by 8.1%, driven by higher premiums from its commercial insurance plans.
For fiscal 2024, analysts expect CNC to report EPS of $6.81, up nearly 2% from $6.68 in fiscal 2023. Looking ahead to fiscal 2025, EPS is projected to climb 10.4% annually to $7.52.
Centene has risen 6.4% over the past 52 weeks, underperforming both the S&P 500 Index's ($SPX) 25.6% gain and the US Healthcare Providers iShares ETF's (IHF) 7% increase over the same period.
Shares of Centene Corporation rose 1.2% on Feb. 6 as the company beat Wall Street estimates for Q4 revenue, driven by higher premiums in its commercial insurance business. Plus, the company narrowly edged past profit expectations despite higher medical costs. However, despite the company’s strong Q1 profit and raised annual profit forecast, the stock fell 2.2% on Apr. 26 due to concerns over the challenging Medicare Advantage macro landscape, including lower-than-expected 2025 reimbursement rates and elevated medical costs.
Overall, analysts' consensus view on Centene stock is cautiously optimistic, with a "Moderate Buy" rating. Out of 18 analysts covering the stock, nine recommend a "Strong Buy," and the remaining nine give a "Hold" rating.
The above consensus has remained fairly steady over the past three months. The average analyst price target for CNC is $86.44, suggesting a modest potential upside of 27.4% from the current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
