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Centene (CNC) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
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For the quarter ended September 2024, Centene (CNC - Free Report) reported revenue of $42.02 billion, up 10.5% over the same period last year. EPS came in at $1.62, compared to $2.00 in the year-ago quarter.
The reported revenue represents a surprise of +10.86% over the Zacks Consensus Estimate of $37.91 billion. With the consensus EPS estimate being $1.39, the EPS surprise was +16.55%.
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): 89.2% versus the four-analyst average estimate of 88.6%.
Membership Medicaid - High Acuity Medicaid: 1.59 million versus the three-analyst average estimate of 1.48 million.
Membership by line of business - Medicaid: 13.07 million compared to the 13.07 million average estimate based on three analysts.
SG&A Expense Ratio: 8.3% compared to the 8.7% average estimate based on three analysts.
Revenues- Premium and service revenues: $36.90 billion versus $34.64 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +5.5% change.
Revenues- Premium: $36.12 billion versus the five-analyst average estimate of $33.81 billion. The reported number represents a year-over-year change of +6.6%.
Revenues- Service: $784 million compared to the $833.40 million average estimate based on five analysts. The reported number represents a change of -28.8% year over year.
Revenues- Premium tax: $5.12 billion versus the five-analyst average estimate of $3.14 billion. The reported number represents a year-over-year change of +66.6%.
Revenues- Premium and service revenues- Commercial: $8.69 billion versus $8.26 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +34.7% change.
Revenues- Premium and service revenues- Medicare: $5.64 billion versus the three-analyst average estimate of $5.69 billion. The reported number represents a year-over-year change of +3.9%.
Revenues- Premium and service revenues- Medicaid: $21.32 billion compared to the $19.67 billion average estimate based on three analysts. The reported number represents a change of -1.4% year over year.
Revenues- Premium and service revenues- Other: $1.25 billion versus $1.19 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -14.9% change.
Shares of Centene have returned -16.4% over the past month versus the Zacks S&P 500 composite's +1.4% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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Centene (CNC) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended September 2024, Centene (CNC - Free Report) reported revenue of $42.02 billion, up 10.5% over the same period last year. EPS came in at $1.62, compared to $2.00 in the year-ago quarter.
The reported revenue represents a surprise of +10.86% over the Zacks Consensus Estimate of $37.91 billion. With the consensus EPS estimate being $1.39, the EPS surprise was +16.55%.
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): 89.2% versus the four-analyst average estimate of 88.6%.
- Membership Medicaid - High Acuity Medicaid: 1.59 million versus the three-analyst average estimate of 1.48 million.
- Membership by line of business - Medicaid: 13.07 million compared to the 13.07 million average estimate based on three analysts.
- SG&A Expense Ratio: 8.3% compared to the 8.7% average estimate based on three analysts.
- Revenues- Premium and service revenues: $36.90 billion versus $34.64 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +5.5% change.
- Revenues- Premium: $36.12 billion versus the five-analyst average estimate of $33.81 billion. The reported number represents a year-over-year change of +6.6%.
- Revenues- Service: $784 million compared to the $833.40 million average estimate based on five analysts. The reported number represents a change of -28.8% year over year.
- Revenues- Premium tax: $5.12 billion versus the five-analyst average estimate of $3.14 billion. The reported number represents a year-over-year change of +66.6%.
- Revenues- Premium and service revenues- Commercial: $8.69 billion versus $8.26 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +34.7% change.
- Revenues- Premium and service revenues- Medicare: $5.64 billion versus the three-analyst average estimate of $5.69 billion. The reported number represents a year-over-year change of +3.9%.
- Revenues- Premium and service revenues- Medicaid: $21.32 billion compared to the $19.67 billion average estimate based on three analysts. The reported number represents a change of -1.4% year over year.
- Revenues- Premium and service revenues- Other: $1.25 billion versus $1.19 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -14.9% change.
View all Key Company Metrics for Centene here>>>Shares of Centene have returned -16.4% over the past month versus the Zacks S&P 500 composite's +1.4% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.