Core Viewpoint - Centene Corporation is facing a class action lawsuit due to allegations of providing misleading statements regarding its enrollment and morbidity rates, leading to a significant drop in stock price after the company withdrew its 2025 guidance [1][2]. Group 1: Allegations and Impact - The lawsuit claims that Centene's management made overly positive statements while concealing adverse facts about the company's performance [1]. - Following the withdrawal of the 2025 guidance, Centene's stock price plummeted by 40.4%, from $56.65 on July 1, 2025, to $33.78 on July 2, 2025 [1]. - The company's revised guidance indicated a reduction to approximately $1.8 billion in revenue and an adjusted diluted EPS of $2.75, which was lower than market expectations [1]. Group 2: Class Action Details - Shareholders who purchased shares during the class period from December 12, 2024, to June 30, 2025, are encouraged to register for the class action, with a deadline set for September 8, 2025 [2]. - Participants will be enrolled in a portfolio monitoring system to receive updates on the case's progress [2]. - There is no cost or obligation for shareholders to participate in the class action [2]. Group 3: Law Firm Background - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting investors' rights against deceit and fraud [3]. - The firm aims to ensure companies adhere to responsible business practices and seeks recovery for investors affected by misleading statements [3].

Core Viewpoint - A lawsuit has been filed against Centene Corporation and its senior executives for potential violations of federal securities laws, with claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [1][2]. Company Overview - Centene Corporation is a healthcare company that provides services to consumers enrolled in government-sponsored healthcare programs such as Medicaid and Medicare, as well as those purchasing insurance under the Affordable Care Act [3]. Financial Guidance and Performance - On December 12, 2024, Centene announced financial guidance for fiscal year 2025, claiming stability in earnings despite challenges [4]. - The company increased its 2025 guidance on February 4, 2025, citing enrollment overperformance, and again on April 25, 2025, due to strong growth in enrollment and retention [4]. - However, the actual market conditions showed lower than expected enrollment growth and increased morbidity rates in the majority of the states Centene serves [4]. Stock Market Reaction - On July 1, 2025, Centene withdrew its previous guidance after an independent actuarial report revealed lower than expected market growth and higher morbidity rates, leading to a significant stock price drop of $22.87 per share, or over 40%, from $56.65 to $33.78 [5].

Core Insights - Centene Corporation (CNC) unexpectedly withdrew its earnings guidance for 2025 due to changes in the health insurance marketplace dynamics, which are anticipated to have a more significant impact on earnings than previously forecasted [1][7] Financial Impact - The company is expecting a shortfall of approximately $1.8 billion in net risk adjustment revenues, which translates to an estimated $2.75 reduction in adjusted diluted EPS for 2025 [3][7] - Wall Street analysts have significantly reduced their EPS projections for 2025, cutting the Zacks profit consensus from $7.29 to $3.55, reflecting a more cautious outlook [3][7] Market Conditions - The decision to withdraw guidance was influenced by industry risk adjustment data from Wakely, which indicated higher-than-expected overall market morbidity and a slower growth rate in the marketplace [2] - Despite challenges, the final 2024 risk-adjusted results from the Centers for Medicare and Medicaid Services met the company's expectations, and segments like Medicare Advantage are performing better than anticipated [4] Strategic Adjustments - Centene is proactively adjusting its rates to account for a higher morbidity baseline, which is seen as essential for mitigating potential losses [5] - The company plans to implement these pricing changes in states where it has significant marketplace operations, indicating a more defensive pricing strategy moving forward [5] Analyst Reactions - Wells Fargo downgraded CNC shares to Equal-Weight and reduced their price target from $72 to $30, reflecting the need for a closer examination of the second-quarter earnings and data analysis [6]

Group 1 - A class action has been filed against Centene Corporation on behalf of investors who acquired its securities between December 12, 2024, and June 30, 2025 [1] - The allegations state that Centene misled investors about its business prospects, particularly regarding projected revenue and enrollment rates [2] - On July 1, 2025, Centene withdrew its 2025 guidance, revealing that its market growth across 22 states was lower than expected, leading to a significant stock price decline of over 40% from $56.65 to $44.78 per share [3] Group 2 - Shareholders may be eligible to participate in the class action and can contact Robbins LLP if they wish to serve as lead plaintiff [4] - Robbins LLP operates on a contingency fee basis, meaning shareholders incur no fees or expenses [5] - Interested parties can sign up for notifications regarding the class action settlement or alerts on corporate wrongdoing [6]

Core Viewpoint - Centene Corporation (CNC) is expected to report a significant decline in earnings for Q2 2025, with an estimated earnings per share of 68 cents, reflecting a 71.9% decrease from the same quarter last year [1][6]. Earnings Estimates - The Zacks Consensus Estimate for revenues is projected at $43.9 billion, indicating a 10.3% growth compared to the previous year [2]. - The earnings estimate has not seen any upward revisions, with two downward movements in the past week [2]. Earnings Surprise History - Centene has beaten earnings estimates in three of the last four quarters, with an average surprise of 25.47% [3]. - The current Earnings ESP for Centene is 0.00%, and it holds a Zacks Rank of 5 (Strong Sell), suggesting a low probability of an earnings beat this time [4]. Factors Influencing Q2 Results - Premium revenues are expected to rise by 14% due to growth in the Commercial Marketplace business, with estimates for premiums at $39.9 billion, a 13.6% increase year-over-year [6][8]. - Medical costs are anticipated to surge by 17.8% year-over-year, which may negatively impact overall margins [6][12]. - Membership in the Commercial Marketplace is projected to grow by 22.7%, while Medicaid and Medicare memberships are expected to decline by 1.9% and 9.8%, respectively [9]. Revenue and Cost Projections - Service revenues are estimated at $774 million, reflecting a 7.1% decline from the previous year [10]. - The health benefits ratio (HBR) is expected to increase to 91%, indicating a deterioration of 300 basis points year-over-year [11].

NEW YORK, July 23, 2025 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Centene Corporation ("Centene" or the "Company")(NYSE: CNC). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, (or 888.4-POMLAW), toll- free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased. The class action concerns whether Centene and certain of its off ...

SAN DIEGO, July 23, 2025 (GLOBE NEWSWIRE) -- Robbins Geller Rudman & Dowd LLP announces that the Centene class action lawsuit – captioned Lunstrum v. Centene Corporation, No. 25-cv-05659 (S.D.N.Y.) – seeks to represent purchasers or acquirers of Centene Corporation (NYSE: CNC) securities and charges Centene and certain of Centene’s top executives with violations of the Securities Exchange Act of 1934. If you suffered substantial losses and wish to serve as lead plaintiff of the Centene class action lawsuit, ...

Core Viewpoint - Centene Corporation is facing a class action securities lawsuit due to alleged securities fraud that affected investors between December 12, 2024, and June 30, 2025 [1][2] Group 1: Lawsuit Details - The lawsuit claims that Centene provided misleading statements about its enrollment and morbidity rates while concealing adverse facts [2] - On July 1, 2025, Centene withdrew its 2025 guidance, revealing that its market growth across 22 states was lower than expected, leading to a revised guidance of approximately $1.8 billion and an adjusted diluted EPS of $2.75 [2] - Following this announcement, Centene's stock price plummeted from $56.65 per share to $33.78 per share, marking a decline of 40.4% [2] Group 2: Investor Information - Investors who suffered losses during the relevant timeframe have until September 8, 2025, to request to be appointed as lead plaintiff [3] - Class members may be entitled to compensation without any out-of-pocket costs or fees [3] Group 3: Legal Firm Background - Levi & Korsinsky has a strong track record in securities litigation, having secured hundreds of millions of dollars for shareholders over the past 20 years [4] - The firm has been recognized in ISS Securities Class Action Services' Top 50 Report for seven consecutive years as one of the leading securities litigation firms in the U.S. [4]

Core Viewpoint - Analysts forecast that Centene (CNC) will report quarterly earnings of $0.68 per share, indicating a year-over-year decline of 71.9%, while revenues are expected to reach $44.27 billion, reflecting an increase of 11.1% compared to the previous year [1]. Earnings Estimates - Over the last 30 days, there has been a downward revision of 57.3% in the consensus EPS estimate for the quarter, indicating a significant reconsideration by analysts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are strongly linked to short-term stock price performance [3]. Revenue Projections - Analysts project 'Revenues- Premium and service revenues' to reach $40.68 billion, a year-over-year increase of 13.1% [5]. - 'Revenues- Premium' is expected to be $39.91 billion, reflecting a 13.6% increase year over year [5]. - 'Revenues- Service' is estimated at $774.23 million, indicating a decline of 7.1% from the prior year [5]. - 'Revenues- Premium tax' is anticipated to be $3.32 billion, showing a decrease of 14.2% year over year [6]. Membership Metrics - 'Membership by line of business - Medicaid' is projected at 12.89 million, down from 13.14 million in the same quarter last year [7]. - 'Membership by line of business - Medicare PDP' is expected to reach 7.89 million, up from 6.60 million a year ago [7]. - 'Membership by line of business - Medicare' is estimated at 1.03 million, compared to 1.14 million last year [8]. - 'Membership Medicaid - Traditional Medicaid' is projected at 11.31 million, down from 11.64 million in the previous year [8]. - 'Membership Medicaid - High Acuity Medicaid' is estimated at 1.58 million, slightly up from 1.50 million last year [9]. - 'Membership Commercial - Commercial Group' is expected to reach 443.35 thousand, compared to 426.40 thousand a year ago [9]. Expense Ratios - Analysts estimate the 'SG&A Expense Ratio' to be 7.8%, a decrease from 8.0% in the same quarter last year [10]. Stock Performance - Centene shares have shown a return of -48.6% over the past month, contrasting with the Zacks S&P 500 composite's +5.9% change, indicating expected underperformance in the near future [11].

Core Viewpoint - Centene Corporation is facing a class action securities lawsuit due to alleged securities fraud that affected investors between December 12, 2024, and June 30, 2025 [1][2] Group 1: Lawsuit Details - The lawsuit claims that Centene's management provided misleading positive statements while concealing adverse facts about the company's enrollment and morbidity rates [2] - On July 1, 2025, Centene withdrew its 2025 guidance, revealing that its market growth across 22 states was lower than expected, leading to a revised guidance of approximately $1.8 billion and an adjusted diluted EPS of $2.75 [2] - Following this announcement, Centene's stock price plummeted from $56.65 per share on July 1, 2025, to $33.78 per share on July 2, 2025, marking a decline of 40.4% [2] Group 2: Next Steps for Investors - Investors who suffered losses during the relevant period have until September 8, 2025, to request the Court to appoint them as lead plaintiff, although participation in any recovery does not require serving as a lead plaintiff [3] - Class members may be entitled to compensation without any out-of-pocket costs or fees [3] Group 3: Firm Background - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions of dollars for shareholders over the past 20 years [4] - The firm has been recognized in ISS Securities Class Action Services' Top 50 Report for seven consecutive years as one of the leading securities litigation firms in the United States [4]