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What to Expect From Centene (CNC) this Earnings Season?
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Centene Corporation (CNC - Free Report) is scheduled to release first-quarter 2022 earnings on Apr 26, before the opening bell.
Q1 Estimates
The Zacks Consensus Estimate for Centene's first-quarter earnings per share is pegged at $1.68, which indicates an improvement of 3.1% from the prior-year quarter's reported figure.
The consensus mark for revenues stands at $34.7 billion, suggesting growth of 15.7% from the year-ago quarter.
Earnings Surprise History
Centene's bottom line missed estimates in three of the trailing four quarters and beat the same once, the average negative surprise being 2.96%. This is depicted in the chart below:
Centene's first-quarter revenues are likely to reflect increased premium and service revenues and significant membership growth across its Medicaid and Medicare businesses. The sound performance of CNC's Marketplace business might have contributed to its top-line growth in the to-be-reported quarter.
The Zacks Consensus Estimate for Centene's premium and service revenues is pegged at $32.7 billion, which indicates an improvement of 16.5% from the prior-year reported figure.
Centene's leading nationwide position in offering government-sponsored healthcare in the form of Medicare, Medicaid and Marketplace businesses may have provided a boost to its first-quarter performance. While the Medicaid business is likely to have benefited from contract wins, the Medicare and Marketplace businesses of CNC are likely to have gained from enhanced product offerings in line with evolving members' needs in the quarter to be reported. All three businesses are likely to have received a boost from expansion across different regions.
Though COVID-19 patient admissions continue, Centene anticipates a reduction in the duration of patient stay and the subsequent resulting costs associated with the pandemic in the first quarter. This might provide some respite to CNC's bottom line in the to-be-reported quarter. However, its margins may have taken a hit from a decline in investment income. The Zacks Consensus Estimate for investment and other income of the health insurer is pegged at $81 million, suggesting a decline of 21.4% from the prior-year quarter.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Centene this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that's not the case here.
Earnings ESP: Centene has an Earnings ESP of -2.98% because the Most Accurate Estimate of $1.63 is pegged lower than the Zacks Consensus Estimate of $1.68. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
While earnings beat looks uncertain for Centene, there are some companies from the Medical space that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this time:
ProPhase Labs, Inc. (PRPH - Free Report) has an Earnings ESP of +22.08% and a Zacks Rank of 1. The Zacks Consensus Estimate for ProPhase Labs' first-quarter 2022 earnings is pegged at 39 cents, indicating an improvement of 69.6% from the year-ago quarter's reported figure.
The consensus mark for PRPH's first-quarter 2022 earnings has moved 62.5% north in the past 30 days.
Vertex Pharmaceuticals Incorporated (VRTX - Free Report) has an Earnings ESP of +0.87% and a Zacks Rank #2. The Zacks Consensus Estimate for Vertex Pharmaceuticals' first-quarter 2022 earnings is pegged at $3.60, which suggests growth of 20.8% from the prior-year quarter's reported figure.
VRTX's earnings beat estimates in each of the trailing four quarters of 2021.
PaciraBioSciences, Inc. (PCRX - Free Report) has an Earnings ESP of +7.05% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for PaciraBioSciences' first-quarter 2022 earnings stands at 74 cents, which indicates growth of 39.6% from the prior-year quarter.
PCRX beat earnings estimates in three of the four reported quarters in 2021 and missed once.
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What to Expect From Centene (CNC) this Earnings Season?
Centene Corporation (CNC - Free Report) is scheduled to release first-quarter 2022 earnings on Apr 26, before the opening bell.
Q1 Estimates
The Zacks Consensus Estimate for Centene's first-quarter earnings per share is pegged at $1.68, which indicates an improvement of 3.1% from the prior-year quarter's reported figure.
The consensus mark for revenues stands at $34.7 billion, suggesting growth of 15.7% from the year-ago quarter.
Earnings Surprise History
Centene's bottom line missed estimates in three of the trailing four quarters and beat the same once, the average negative surprise being 2.96%. This is depicted in the chart below:
Centene Corporation Price and EPS Surprise
Centene Corporation price-eps-surprise | Centene Corporation Quote
Factors to Note
Centene's first-quarter revenues are likely to reflect increased premium and service revenues and significant membership growth across its Medicaid and Medicare businesses. The sound performance of CNC's Marketplace business might have contributed to its top-line growth in the to-be-reported quarter.
The Zacks Consensus Estimate for Centene's premium and service revenues is pegged at $32.7 billion, which indicates an improvement of 16.5% from the prior-year reported figure.
Centene's leading nationwide position in offering government-sponsored healthcare in the form of Medicare, Medicaid and Marketplace businesses may have provided a boost to its first-quarter performance. While the Medicaid business is likely to have benefited from contract wins, the Medicare and Marketplace businesses of CNC are likely to have gained from enhanced product offerings in line with evolving members' needs in the quarter to be reported. All three businesses are likely to have received a boost from expansion across different regions.
Though COVID-19 patient admissions continue, Centene anticipates a reduction in the duration of patient stay and the subsequent resulting costs associated with the pandemic in the first quarter. This might provide some respite to CNC's bottom line in the to-be-reported quarter. However, its margins may have taken a hit from a decline in investment income. The Zacks Consensus Estimate for investment and other income of the health insurer is pegged at $81 million, suggesting a decline of 21.4% from the prior-year quarter.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Centene this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that's not the case here.
Earnings ESP: Centene has an Earnings ESP of -2.98% because the Most Accurate Estimate of $1.63 is pegged lower than the Zacks Consensus Estimate of $1.68. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: CNC currently carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
Stocks to Consider
While earnings beat looks uncertain for Centene, there are some companies from the Medical space that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this time:
ProPhase Labs, Inc. (PRPH - Free Report) has an Earnings ESP of +22.08% and a Zacks Rank of 1. The Zacks Consensus Estimate for ProPhase Labs' first-quarter 2022 earnings is pegged at 39 cents, indicating an improvement of 69.6% from the year-ago quarter's reported figure.
The consensus mark for PRPH's first-quarter 2022 earnings has moved 62.5% north in the past 30 days.
Vertex Pharmaceuticals Incorporated (VRTX - Free Report) has an Earnings ESP of +0.87% and a Zacks Rank #2. The Zacks Consensus Estimate for Vertex Pharmaceuticals' first-quarter 2022 earnings is pegged at $3.60, which suggests growth of 20.8% from the prior-year quarter's reported figure.
VRTX's earnings beat estimates in each of the trailing four quarters of 2021.
PaciraBioSciences, Inc. (PCRX - Free Report) has an Earnings ESP of +7.05% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for PaciraBioSciences' first-quarter 2022 earnings stands at 74 cents, which indicates growth of 39.6% from the prior-year quarter.
PCRX beat earnings estimates in three of the four reported quarters in 2021 and missed once.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.