Centene (NYSE:CNC) Updates FY 2025 Earnings Guidance

Key Points

• Centene updated its FY 2025 earnings guidance, projecting earnings per share of $1.750, significantly lower than the consensus estimate of $5.443, and revenue guidance of $172.0 billion versus a consensus of $180.1 billion.
• On Friday, Centene's stock rose by 6.0%, trading at $28.36, amid higher trading volume compared to its average.
• Recent analyst reports have downgraded Centene's stock ratings, with 14 hold ratings and several target prices significantly reduced, indicating a cautious outlook on the stock.

Centene (NYSE:CNC - Get Free Report) updated its FY 2025 earnings guidance on Friday. The company provided earnings per share guidance of 1.750-1.750 for the period, compared to the consensus earnings per share estimate of 5.443. The company issued revenue guidance of $172.0 billion-$172.0 billion, compared to the consensus revenue estimate of $180.1 billion.

Centene Stock Up 6.0%

Shares of NYSE CNC traded up $1.60 during midday trading on Friday, hitting $28.36. The company's stock had a trading volume of 63,439,459 shares, compared to its average volume of 7,681,520. The business's fifty day simple moving average is $47.43 and its two-hundred day simple moving average is $56.11. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.11 and a quick ratio of 1.11. Centene has a 1 year low of $26.25 and a 1 year high of $80.59. The firm has a market capitalization of $14.11 billion, a price-to-earnings ratio of 4.23, a price-to-earnings-growth ratio of 0.55 and a beta of 0.44.

Centene (NYSE:CNC - Get Free Report) last posted its quarterly earnings data on Friday, July 25th. The company reported ($0.16) EPS for the quarter, missing the consensus estimate of $0.23 by ($0.39). Centene had a net margin of 2.04% and a return on equity of 14.56%. The business had revenue of $48.74 billion during the quarter, compared to analysts' expectations of $44.71 billion. During the same period in the previous year, the business posted $2.42 EPS. The company's revenue for the quarter was up 22.4% compared to the same quarter last year. On average, equities analysts predict that Centene will post 6.86 EPS for the current year.

Analyst Ratings Changes

CNC has been the topic of a number of research analyst reports. UBS Group reissued a "neutral" rating and set a $45.00 price objective (down previously from $80.00) on shares of Centene in a report on Wednesday, July 2nd. JPMorgan Chase & Co. restated a "neutral" rating and set a $48.00 target price (down from $75.00) on shares of Centene in a research report on Wednesday, July 2nd. Truist Financial lowered their target price on shares of Centene from $84.00 to $42.00 and set a "buy" rating on the stock in a research report on Wednesday, July 16th. Morgan Stanley lowered shares of Centene from an "overweight" rating to an "equal weight" rating and lowered their target price for the stock from $70.00 to $33.00 in a research report on Thursday, July 10th. Finally, Wall Street Zen lowered shares of Centene from a "buy" rating to a "hold" rating in a research report on Saturday, July 12th. One investment analyst has rated the stock with a sell rating, fourteen have given a hold rating and four have issued a buy rating to the company. According to MarketBeat, Centene currently has a consensus rating of "Hold" and an average target price of $49.94.

Institutional Inflows and Outflows

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

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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