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With a market cap of $31.9 billion, Centene Corporation (CNC) is a leading multinational healthcare enterprise specializing in services for government-sponsored healthcare programs, primarily catering to underinsured and uninsured individuals. Through its innovative, member-focused approach and expanding reach, Centene continues to drive growth and deliver quality healthcare solutions to underserved communities. The Saint Louis, Missouri-based company is expected to release its fiscal Q4 earnings results on Tuesday, Feb. 4.
Ahead of this event, analysts project the healthcare company to report a profit of $0.49 per share, an 8.9% year-over-year growth from $0.45 per share in the year-ago quarter. The company has exceeded Wall Street's bottom-line estimates in three of the last four quarters while missing on another occasion. In the most recent quarter, CNC surpassed the consensus EPS estimate by 16.6%.
For fiscal 2024, analysts forecast CNC to report EPS of $6.81, up nearly 2% from $6.68 in fiscal 2023. Moreover, EPS is expected to grow 2.6% year-over-year to $6.99 in fiscal 2025.
Over the past 52 weeks, Centene has declined 17.7%, underperforming the broader S&P 500 Index's ($SPX) 24.4% gain and the Health Care Select Sector SPDR Fund's (XLV) marginal dip over the same period.
Shares of Centene soared 4.2% on Oct. 25, fueled by its robust Q3 2024 performance, including an adjusted EPS of $1.62 and revenue of $42 billion, beating projections. The company raised its 2024 guidance, increasing projected revenues to $159 billion - $161 billion and adjusted EPS to greater than $6.80, signaling optimism. Centene's announcement of $1.2 billion in Q3 share repurchases and an additional $380 million in October demonstrated significant shareholder value initiatives. Furthermore, strong growth in the Commercial Marketplace business and improved premium revenues supported investor confidence.
Analysts' consensus view on Centene stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 17 analysts covering the stock, 10 suggest a "Strong Buy," six give a "Hold," and one provides a "Moderate Sell" rating. This configuration is more bullish than three months ago, with eight analysts suggesting a "Strong Buy."
As of writing, CNC is trading below the average analyst price target of $78.56.
