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Compared to Estimates, Centene (CNC) Q2 Earnings: A Look at Key Metrics

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Centene (CNC - Free Report) reported $37.61 billion in revenue for the quarter ended June 2023, representing a year-over-year increase of 4.7%. EPS of $2.10 for the same period compares to $1.77 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $36.36 billion, representing a surprise of +3.44%. The company delivered an EPS surprise of +2.44%, with the consensus EPS estimate being $2.05.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Centene performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Total Medical Health (Benefits) loss Ratios -Total Ratio (HBR): 87% versus 87.01% estimated by four analysts on average.
  • Membership by line of business - Medicare PDP: 4493.7 thousand compared to the 4490.08 thousand average estimate based on two analysts.
  • Membership by line of business - Medicare: 1329 thousand compared to the 1354.43 thousand average estimate based on two analysts.
  • Membership by line of business - Medicaid: 16059.6 thousand compared to the 16442.68 thousand average estimate based on two analysts.
  • Revenues- Service: $1.13 billion versus the five-analyst average estimate of $1.14 billion. The reported number represents a year-over-year change of -54.2%.
  • Revenues- Premium: $33.71 billion versus $33.17 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +7% change.
  • Revenues- Premium and service revenues: $34.84 billion versus the five-analyst average estimate of $34.31 billion.
  • Revenues- Premium tax: $2.77 billion versus $1.84 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +40.8% change.
  • Revenues- Premium and service revenues- Medicare: $5.67 billion versus the three-analyst average estimate of $5.76 billion.
  • Revenues- Premium and service revenues- Commercial: $5.73 billion compared to the $5.29 billion average estimate based on three analysts.
  • Revenues- Premium and service revenues- Other: $1.54 billion versus the three-analyst average estimate of $1.77 billion.
  • Revenues- Premium and service revenues- Medicaid: $21.90 billion compared to the $22.74 billion average estimate based on three analysts.
View all Key Company Metrics for Centene here>>>

Shares of Centene have returned +4.4% over the past month versus the Zacks S&P 500 composite's +3.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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