With a market cap of $16.6 billion, Centene Corporation (CNC) is a multinational healthcare enterprise that delivers services primarily to under-insured and uninsured populations through government-sponsored programs. Operating across multiple segments, including Medicaid, Medicare, Commercial, and Specialty Services, Centene offers a diverse portfolio of healthcare solutions and products nationwide.
The Saint Louis, Missouri-based company is slated to announce its fiscal Q2 2025 earnings results on Friday, Jul. 25. Ahead of this event, analysts expect CNC to report an adjusted EPS of $1.72, a 28.9% decrease from $2.42 in the year-ago quarter. It has exceeded Wall Street’s earnings expectations in three of the past four quarters while missing on another occasion.
For fiscal 2025, analysts expect the healthcare company to report adjusted EPS of $6.46, marking a decline of 9.9% from $7.17 in fiscal 2024. However, adjusted EPS is expected to increase nearly 7% year-over-year to $6.91 in fiscal 2026.
Shares of Centene have tumbled nearly 50% over the past 52 weeks, significantly underperforming both the S&P 500 Index’s ($SPX) 12.2% rise and the Health Care Select Sector SPDR Fund’s (XLV) 6.7% decline over the same period.
Despite Centene reporting better-than-expected Q1 2025 adjusted EPS of $2.90 and revenue of $46.6 billion, shares dipped 6.3% on Apr. 25 due to concerns over elevated Medicaid-related costs. The company’s overall medical loss ratio (MLR) of 87.5% slightly exceeded the estimate, while its Medicaid-specific MLR surged to 93.6%, signaling margin pressure from costlier enrollees following post-pandemic eligibility redeterminations. Additionally, total Medicaid membership declined 2.5% to 13 million, raising investor concerns despite strong 27.3% growth in commercial plan enrollment and a $5 billion revenue boost from ACA marketplace plans.
Analysts’ consensus rating on Centene stock is cautiously optimistic, with a “Moderate Buy” rating overall. Among 18 analysts covering the stock, six recommend a “Strong Buy,” one has a “Moderate Buy” rating, and 11 give a “Hold” rating. This configuration is less bullish than three months ago, with nine analysts suggesting a “Strong Buy.”
