Health coverage company Centene (NYSE: CNC) will be reporting results this Tuesday before market open. Here’s what to look for.
Centene beat analysts’ revenue expectations last quarter, reporting revenues of $53.58 billion, up 9.9% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ full-year EPS guidance estimates. It lost -387,500 customers and ended up with a total of 25.89 million.
Is Centene a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Centene’s revenue to decline 5.8% year on year, a reversal from the 18.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Centene has a history of exceeding Wall Street’s expectations.
Looking at Centene’s peers in the health insurance providers segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Elevance Health posted flat year-on-year revenue, beating analysts’ expectations by 3.1%, and UnitedHealth reported flat revenue, topping estimates by 1.2%. Elevance Health traded up 1.4% following the results while UnitedHealth was also up 4.5%.
Read our full analysis of Elevance Health’s results here and UnitedHealth’s results here.
There has been positive sentiment among investors in the health insurance providers segment, with share prices up 2.7% on average over the last month. Centene is up 13.5% during the same time and is heading into earnings with an average analyst price target of $71.78 (compared to the current share price of $70.96).
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