Centene Q4 Beats Market; Backs FY25 Earnings View, Lifts Premium And Service Revenue Forecast

Centene

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(RTTNews) - Centene Corp. (CNC), while reporting higher profit in its fourth quarter, above market estimates, on Tuesday maintained fiscal 2025 earnings view, while lifted forecast for premium and service revenues.

For the full year 2025, the company continues to project net earnings of greater than $6.19 per share, and adjusted income per share above $7.25.

The Wall Street analysts on average expect the company to report earnings of $7.32 per share for the year. Analysts' estimates typically exclude special items.

Further, the company increased its 2025 premium and service revenues guidance range by $4.0 billion to a range of $158.0 billion to $160.0 billion.

Centene previously anticipated premium and service revenues for 2025 to be in the range of $154 billion to $156 billion, with total revenues of $166.5 billion to $169.5 billion.

In fiscal 2024, earnings were $6.31 per share and adjusted earnings per share were $7.17 on premium and service revenues of $145.5 billion.

The outlook revision reflects outperformance in PDP annual enrollment and Medicare Advantage annual enrollment resulting in additional premium revenue. In addition, there was $1.5 billion of additional Medicaid premium revenue due to a program change adding behavioral health coverage in one of its state contracts.

In its fourth quarter, Centene's earnings totaled $283 million or $0.56 per share, compared to $45 million or $0.08 per share last year.

Adjusted earnings were $404 million or $0.80 per share for the period. Analysts had expected the company to earn $0.49 per share.

The company's revenue for the period rose 3.4% to $40.81 billion from $39.46 billion last year. The Street was looking for revenues of $39.32 billion for the quarter.

In pre-market activity on the NYSE, Centene shares were trading at $65.50, up 1.05 percent.

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