Centene Corporation Financial Outlook

Shares of Centene Corporation (NYSE:CNC) experienced a 2% uptick in pre-market trading Thursday after the company’s financial outlook surpassed Wall Street's earnings expectations.

During its investor day, Centene provided an adjusted diluted EPS forecast for 2025 of over $7.25, exceeding the consensus estimate of $7.05. The healthcare enterprise also reaffirmed its 2024 adjusted diluted EPS guidance of more than $6.80, surpassing the anticipated $6.73.

CEO Statement

Centene's CEO, Sarah M. London, highlighted the company's commitment to quality care for its 28 million members, mentioning improvements in core operations and investments in customer and provider experiences. She stated, "This morning, we are reiterating our 2024 adjusted diluted EPS guidance of greater than $6.80. Additionally, we issued 2025 adjusted diluted EPS guidance of greater than $7.25, representing more than 6% year-over-year growth."

Financial Guidance

The company’s financial guidance for the 2025 fiscal year includes total revenues of $166.5 billion to $169.5 billion and premium and service revenues between $154.0 billion and $156.0 billion. Other forecasts are:
– GAAP diluted EPS of more than $6.19
– Adjusted diluted EPS of over $7.25
– Health benefits ratio (HBR) between 88.4% and 89.0%
– Selling, general and administrative (SG&A) expense ratios between 8.1% and 8.7%
– Effective tax rate projected between 21.5% and 22.5%
– Adjusted effective tax rate of 22.0% to 23.0%
– Diluted shares outstanding estimated between 491.0 million and 494.0 million.

For 2024, Centene confirms guidance for premium and service revenues in the range of $143.5 billion to $144.5 billion, with an HBR of 88.3% to 88.5% and an adjusted diluted EPS of greater than $6.80. The company plans to report its full-year 2024 earnings on February 4, 2025, at 6:00 a.m. Eastern Time, followed by a conference call at 8:30 a.m. Eastern Time.

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