Health coverage company Centene (NYSE: CNC) will be reporting results this Wednesday before market hours. Here’s what to look for.
Centene beat analysts’ revenue expectations by 11.6% last quarter, reporting revenues of $48.74 billion, up 22.4% year on year. It was a strong quarter for the company, with a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ customer base estimates. It added 60,900 customers to reach a total of 28 million.
Is Centene a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Centene’s revenue to grow 13.9% year on year to $47.85 billion, improving from the 10.5% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.16 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Centene has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 8.6% on average.
Looking at Centene’s peers in the healthcare providers & services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Elevance Health delivered year-on-year revenue growth of 11%, meeting analysts’ expectations, and Molina Healthcare reported revenues up 11%, topping estimates by 4.7%. Elevance Health traded down 2.5% following the results while Molina Healthcare was also down 17.3%.
Read our full analysis of Elevance Health’s results here and Molina Healthcare’s results here.
There has been positive sentiment among investors in the healthcare providers & services segment, with share prices up 7% on average over the last month. Centene is down 6.1% during the same time and is heading into earnings with an average analyst price target of $36 (compared to the current share price of $33.06).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
