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Centene (CNC) Reports Q4 Earnings: What Key Metrics Have to Say
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Centene (CNC - Free Report) reported $39.46 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 11%. EPS of $0.45 for the same period compares to $0.86 a year ago.
The reported revenue represents a surprise of +9.63% over the Zacks Consensus Estimate of $35.99 billion. With the consensus EPS estimate being $0.43, the EPS surprise was +4.65%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Centene performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Total Medical Health (Benefits) loss Ratios -Total Ratio (HBR): 89.5% compared to the 89.2% average estimate based on four analysts.
Membership - TRICARE eligibles: 2,773.2 thousand compared to the 2,788.15 thousand average estimate based on three analysts.
Membership Medicaid - Traditional Medicaid: 12,754 thousand versus the three-analyst average estimate of 12,960.45 thousand.
Membership by line of business - Medicaid: 14,472 thousand versus the three-analyst average estimate of 14,731.12 thousand.
Revenues- Premium and service revenues: $35.34 billion versus $33.62 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +5.3% change.
Revenues- Premium: $34.23 billion versus the five-analyst average estimate of $32.54 billion. The reported number represents a year-over-year change of +7.4%.
Revenues- Service: $1.11 billion versus the five-analyst average estimate of $1.08 billion. The reported number represents a year-over-year change of -33.7%.
Revenues- Premium tax: $4.12 billion compared to the $2.11 billion average estimate based on five analysts. The reported number represents a change of +105.3% year over year.
Revenues- Premium and service revenues- Commercial: $7.41 billion versus $6.56 billion estimated by three analysts on average.
Revenues- Premium and service revenues- Medicare: $5.29 billion compared to the $5.34 billion average estimate based on three analysts.
Revenues- Premium and service revenues- Medicaid: $21.11 billion versus the three-analyst average estimate of $21.58 billion.
Revenues- Premium and service revenues- Other: $1.53 billion versus $848.15 million estimated by two analysts on average.
Shares of Centene have returned -3.5% over the past month versus the Zacks S&P 500 composite's +5.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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Centene (CNC) Reports Q4 Earnings: What Key Metrics Have to Say
Centene (CNC - Free Report) reported $39.46 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 11%. EPS of $0.45 for the same period compares to $0.86 a year ago.
The reported revenue represents a surprise of +9.63% over the Zacks Consensus Estimate of $35.99 billion. With the consensus EPS estimate being $0.43, the EPS surprise was +4.65%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Centene performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Total Medical Health (Benefits) loss Ratios -Total Ratio (HBR): 89.5% compared to the 89.2% average estimate based on four analysts.
- Membership - TRICARE eligibles: 2,773.2 thousand compared to the 2,788.15 thousand average estimate based on three analysts.
- Membership Medicaid - Traditional Medicaid: 12,754 thousand versus the three-analyst average estimate of 12,960.45 thousand.
- Membership by line of business - Medicaid: 14,472 thousand versus the three-analyst average estimate of 14,731.12 thousand.
- Revenues- Premium and service revenues: $35.34 billion versus $33.62 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +5.3% change.
- Revenues- Premium: $34.23 billion versus the five-analyst average estimate of $32.54 billion. The reported number represents a year-over-year change of +7.4%.
- Revenues- Service: $1.11 billion versus the five-analyst average estimate of $1.08 billion. The reported number represents a year-over-year change of -33.7%.
- Revenues- Premium tax: $4.12 billion compared to the $2.11 billion average estimate based on five analysts. The reported number represents a change of +105.3% year over year.
- Revenues- Premium and service revenues- Commercial: $7.41 billion versus $6.56 billion estimated by three analysts on average.
- Revenues- Premium and service revenues- Medicare: $5.29 billion compared to the $5.34 billion average estimate based on three analysts.
- Revenues- Premium and service revenues- Medicaid: $21.11 billion versus the three-analyst average estimate of $21.58 billion.
- Revenues- Premium and service revenues- Other: $1.53 billion versus $848.15 million estimated by two analysts on average.
View all Key Company Metrics for Centene here>>>Shares of Centene have returned -3.5% over the past month versus the Zacks S&P 500 composite's +5.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.