Centene (NYSE:CNC) Announces Quarterly Earnings Results

Key Points

• Centene reported a quarterly loss of ($0.16) earnings per share, significantly missing analysts' expectations of $0.23, while revenue surged to $48.74 billion, surpassing estimates of $44.71 billion.
• The company's year-over-year revenue growth increased by 22.4%, but its earnings per share declined from $2.42 a year ago.
• Several analysts have cut their target prices for Centene's stock, with ratings ranging from a sell to a buy, and the average price target now stands at $49.94.

Centene (NYSE:CNC - Get Free Report) posted its quarterly earnings results on Friday. The company reported ($0.16) earnings per share for the quarter, missing analysts' consensus estimates of $0.23 by ($0.39), RTT News reports. The firm had revenue of $48.74 billion for the quarter, compared to analysts' expectations of $44.71 billion. Centene had a return on equity of 14.56% and a net margin of 2.04%. The firm's revenue for the quarter was up 22.4% on a year-over-year basis. During the same period last year, the business earned $2.42 earnings per share. Centene updated its FY 2025 guidance to 1.750-1.750 EPS.

Centene Price Performance

Centene stock traded up $1.60 on Friday, reaching $28.36. The company's stock had a trading volume of 63,439,459 shares, compared to its average volume of 21,896,604. The company has a debt-to-equity ratio of 0.65, a quick ratio of 1.11 and a current ratio of 1.11. The company has a market cap of $14.11 billion, a price-to-earnings ratio of 4.23, a PEG ratio of 0.50 and a beta of 0.44. The business's fifty day moving average price is $46.76 and its 200 day moving average price is $55.87. Centene has a twelve month low of $26.25 and a twelve month high of $80.59.

Hedge Funds Weigh In On Centene

An institutional investor recently bought a new position in Centene stock. Baird Financial Group Inc. acquired a new position in Centene Corporation (NYSE:CNC - Free Report) during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 3,883 shares of the company's stock, valued at approximately $236,000. 93.63% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the company. Cantor Fitzgerald reduced their target price on Centene from $90.00 to $65.00 and set an "overweight" rating for the company in a report on Wednesday, July 2nd. Wells Fargo & Company lowered Centene from an "overweight" rating to an "equal weight" rating and reduced their target price for the stock from $72.00 to $30.00 in a report on Wednesday. Truist Financial cut their price target on Centene from $84.00 to $42.00 and set a "buy" rating for the company in a report on Wednesday, July 16th. JPMorgan Chase & Co. reiterated a "neutral" rating and set a $48.00 price target (down from $75.00) on shares of Centene in a report on Wednesday, July 2nd. Finally, TD Cowen restated a "hold" rating and set a $33.00 price objective (down from $73.00) on shares of Centene in a research report on Monday, July 21st. One investment analyst has rated the stock with a sell rating, fourteen have issued a hold rating and four have given a buy rating to the company. According to MarketBeat, Centene presently has an average rating of "Hold" and a consensus price target of $49.94.

Centene Company Profile

Centene Corporation operates as a healthcare enterprise that provides programs and services to under-insured and uninsured families, commercial organizations, and military families in the United States. The company operates through Medicaid, Medicare, Commercial, and Other segments. The Medicaid segment offers health plan coverage, including medicaid expansion, aged, blind, disabled, children's health insurance program, foster care, medicare-medicaid plans, long-term services and support.

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