We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Centene (CNC) Stock Jumps 8.1%: Will It Continue to Soar?
Read MoreHide Full Article
Centene (CNC - Free Report) shares soared 8.1% in the last trading session to close at $70.45. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5.9% gain over the past four weeks.
The company recently delivered first-quarter 2020 adjusted earnings per share of $1.63, which improved 89.5% year over year attributable to higher revenues.
In the first quarter, total revenues improved 15% year over year to $30 billion resulting from the WellCare buyout and the continuing suspension of Medicaid eligibility redeterminations. As of Mar 31, 2021, managed care membership totaled 25.1 million, which climbed 5% year over year attributable to robust Medicare and Medicaid businesses.
After its strong first-quarter results, the company revised its full-year outlook for 2021. For the current year, management anticipates revenues to be $120.1-$122.1 billion higher than the previous guidance of $116.1-$118.1 billion. In 2021, the company’s adjusted EPS is expected to be $5.05-$5.35, up from the previous guidance of $5-$5.30.
After its strong first-quarter results, the company revised its full-year outlook for 2021.For the current year, management anticipates revenues to be $120.1-$122.1 billion higher than the previous guidance of $116.1-$118.1 billion. In 2021, the company’s adjusted EPS is expected to be $5.05-$5.35, up from the previous guidance of $5-$5.30
In the first quarter, total revenues improved 15% year over year to $30 billion resulting from the WellCare buyout and the continuing suspension of Medicaid eligibility redeterminations. As of Mar 31, 2021, managed care membership totaled 25.1 million, which climbed 5% year over year attributable to robust Medicare and Medicaid businesses.
After its strong first-quarter results, the company revised its full-year outlook for 2021.For the current year, management anticipates revenues to be $120.1-$122.1 billion higher than the previous guidance of $116.1-$118.1 billion.
In 2021, the company’s adjusted EPS is expected to be $5.05-$5.35, up from the previous guidance of $5-$5.30.
Price and Consensus
This healthcare company is expected to post quarterly earnings of $1.61 per share in its upcoming report, which represents a year-over-year change of -32.9%. Revenues are expected to be $30.14 billion, up 8.8% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Centene, the consensus EPS estimate for the quarter has been revised 12.9% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on CNC going forward to see if this recent jump can turn into more strength down the road.
Image: Bigstock
Centene (CNC) Stock Jumps 8.1%: Will It Continue to Soar?
Centene (CNC - Free Report) shares soared 8.1% in the last trading session to close at $70.45. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5.9% gain over the past four weeks.
The company recently delivered first-quarter 2020 adjusted earnings per share of $1.63, which improved 89.5% year over year attributable to higher revenues.
In the first quarter, total revenues improved 15% year over year to $30 billion resulting from the WellCare buyout and the continuing suspension of Medicaid eligibility redeterminations. As of Mar 31, 2021, managed care membership totaled 25.1 million, which climbed 5% year over year attributable to robust Medicare and Medicaid businesses.
After its strong first-quarter results, the company revised its full-year outlook for 2021. For the current year, management anticipates revenues to be $120.1-$122.1 billion higher than the previous guidance of $116.1-$118.1 billion. In 2021, the company’s adjusted EPS is expected to be $5.05-$5.35, up from the previous guidance of $5-$5.30.
Price and Consensus
This healthcare company is expected to post quarterly earnings of $1.61 per share in its upcoming report, which represents a year-over-year change of -32.9%. Revenues are expected to be $30.14 billion, up 8.8% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Centene, the consensus EPS estimate for the quarter has been revised 12.9% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on CNC going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>