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Compared to Estimates, Centene (CNC) Q3 Earnings: A Look at Key Metrics

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Centene (CNC - Free Report) reported $38.04 billion in revenue for the quarter ended September 2023, representing a year-over-year increase of 6.1%. EPS of $2.00 for the same period compares to $1.30 a year ago.

The reported revenue represents a surprise of +5.13% over the Zacks Consensus Estimate of $36.19 billion. With the consensus EPS estimate being $1.58, the EPS surprise was +26.58%.

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.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

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 the five-analyst average estimate of 87.6%.
  • Membership by line of business - Medicaid: 15,240.5 thousand compared to the 15,732.58 thousand average estimate based on four analysts.
  • Membership - Commercial: 4,105.8 thousand compared to the 3,782.89 thousand average estimate based on four analysts.
  • Membership by line of business - Medicare PDP: 4,539.8 thousand versus 4,512.94 thousand estimated by four analysts on average.
  • Revenues- Service: $1.10 billion versus the six-analyst average estimate of $1.12 billion. The reported number represents a year-over-year change of -41.4%.
  • Revenues- Premium: $33.87 billion versus the six-analyst average estimate of $33.10 billion. The reported number represents a year-over-year change of +6.3%.
  • Revenues- Premium and service revenues: $34.97 billion versus $35.30 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +3.7% change.
  • Revenues- Premium tax: $3.08 billion versus the five-analyst average estimate of $1.75 billion. The reported number represents a year-over-year change of +43.8%.
  • Revenues- Premium and service revenues- Commercial: $6.45 billion versus the three-analyst average estimate of $5.84 billion.
  • Revenues- Premium and service revenues- Medicare: $5.43 billion versus $5.60 billion estimated by three analysts on average.
  • Revenues- Premium and service revenues- Other: $1.47 billion compared to the $1.51 billion average estimate based on three analysts.
  • Revenues- Premium and service revenues- Medicaid: $21.62 billion versus the three-analyst average estimate of $22.55 billion.
View all Key Company Metrics for Centene here>>>

Shares of Centene have returned +0.4% over the past month versus the Zacks S&P 500 composite's -2.3% 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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