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What's in the Offing for Centene (CNC) This Earnings Season?
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Centene Corporation (CNC - Free Report) will release fourth-quarter 2020 results on Feb 9, before the market opens.
Let’s see how things are shaping up for this health insurer prior to this announcement.
For the to-be-reported quarter, the company is likely to have suffered COVID-related costs. The Zacks Consensus Estimate for earnings of 45 cents per share indicates a decline of 38.4% from the year-ago quarter’s reported figure.
However, the company is expected to have witnessed membership growth in the fourth quarter of 2020.
Organic growth, strong Medicaid business, growth in Health Insurance Marketplace business, favorable product mix and addition of members via expansion and new programs are expected to have contributed to overall top-line growth.
The consensus mark for the company’s revenues of $28.4 billion suggests an upside of 50.9% from the year-earlier period’s reported number. Other factors, such as improved premiums, might have also supported its top line.
Per the company’s last earnings call, management had expected the utilization trend to continue increasing in the fourth quarter of 2020 based on the regional infection rate and local government responses.
The Zacks Consensus Estimate for the company’s premiums indicates a hike of 50.1% from the prior-year quarter’s reported number.
Membership of the company is likely to have witnessed an increase of the back of COVID-related membership as well as new initiatives.
The consensus estimate for total membership by business line implies a surge of 65.1% from the year-ago quarter’s reported figure.
What the Quantitative Model States
Our proven model doesn’t predict an earnings beat for Centene this reporting cycle. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Centene has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 45 cents. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: Centene currently carries a Zacks Rank #5 (Strong Sell).
Highlights of Q3 Earnings
Centene reported third-quarter 2020 adjusted earnings per share of $1.26, beating the Zacks Consensus Estimate by 31.3%. The bottom line also soared by the same percentage year over year on solid revenues.
Stocks to Consider
Some stocks worth considering from the medical sector with the perfect mix of elements to surpass estimates in the next releases are as follows:
Tenet Healthcare Corporation (THC - Free Report) is slated to announce fourth-quarter earnings on Feb 9. The stock has an Earnings ESP of +38.55% and a Zacks Rank of 1 at present.
Molina Healthcare, Inc. (MOH - Free Report) is set to report fourth-quarter earnings on Feb 10. The stock is currently a #2 Ranked player and has an Earnings ESP of +180.37%.
Teladoc Health, Inc. (TDOC - Free Report) has an Earnings ESP of +31.03% and a Zacks Rank #3, currently. The company is scheduled to release fourth-quarter earnings on Feb 24.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better. See these 7 breakthrough stocks now>>
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What's in the Offing for Centene (CNC) This Earnings Season?
Centene Corporation (CNC - Free Report) will release fourth-quarter 2020 results on Feb 9, before the market opens.
Let’s see how things are shaping up for this health insurer prior to this announcement.
For the to-be-reported quarter, the company is likely to have suffered COVID-related costs. The Zacks Consensus Estimate for earnings of 45 cents per share indicates a decline of 38.4% from the year-ago quarter’s reported figure.
However, the company is expected to have witnessed membership growth in the fourth quarter of 2020.
Organic growth, strong Medicaid business, growth in Health Insurance Marketplace business, favorable product mix and addition of members via expansion and new programs are expected to have contributed to overall top-line growth.
The consensus mark for the company’s revenues of $28.4 billion suggests an upside of 50.9% from the year-earlier period’s reported number.
Other factors, such as improved premiums, might have also supported its top line.
Per the company’s last earnings call, management had expected the utilization trend to continue increasing in the fourth quarter of 2020 based on the regional infection rate and local government responses.
The Zacks Consensus Estimate for the company’s premiums indicates a hike of 50.1% from the prior-year quarter’s reported number.
Membership of the company is likely to have witnessed an increase of the back of COVID-related membership as well as new initiatives.
The consensus estimate for total membership by business line implies a surge of 65.1% from the year-ago quarter’s reported figure.
What the Quantitative Model States
Our proven model doesn’t predict an earnings beat for Centene this reporting cycle. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Centene has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 45 cents. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Centene Corporation Price and EPS Surprise
Centene Corporation price-eps-surprise | Centene Corporation Quote
Zacks Rank: Centene currently carries a Zacks Rank #5 (Strong Sell).
Highlights of Q3 Earnings
Centene reported third-quarter 2020 adjusted earnings per share of $1.26, beating the Zacks Consensus Estimate by 31.3%. The bottom line also soared by the same percentage year over year on solid revenues.
Stocks to Consider
Some stocks worth considering from the medical sector with the perfect mix of elements to surpass estimates in the next releases are as follows:
Tenet Healthcare Corporation (THC - Free Report) is slated to announce fourth-quarter earnings on Feb 9. The stock has an Earnings ESP of +38.55% and a Zacks Rank of 1 at present.
Molina Healthcare, Inc. (MOH - Free Report) is set to report fourth-quarter earnings on Feb 10. The stock is currently a #2 Ranked player and has an Earnings ESP of +180.37%.
Teladoc Health, Inc. (TDOC - Free Report) has an Earnings ESP of +31.03% and a Zacks Rank #3, currently. The company is scheduled to release fourth-quarter earnings on Feb 24.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>