U.S. stock futures were higher this morning, with the Dow futures gaining around 0.2% on Wednesday.Shares of Centene Corporation CNC fell sharply in today's pre-market trading after the health care company withdrew its guidance for 2025.Centene withdrew its previous 2025 earnings guidance and all underlying guidance elements based on the company's preliminary interpretation of marketplace data from the independent actuarial firm Wakely.Centene shares dipped 27.7% to $40.94 in the pre-market trading session. ...

Core Viewpoint - Centene's shares have dropped over 20% after the company withdrew its full-year financial guidance, raising concerns about rising costs in the health insurance sector [1][6]. Group 1: Financial Performance - Centene has lowered its 2025 earnings forecast by $1.8 billion, now expecting earnings of approximately $2.75 per share, significantly below Wall Street's consensus of $7.28 [3][4]. - The downgrade is attributed to unexpectedly high Medicaid costs, particularly in behavioral health services and expensive prescription drugs [3][4]. - Despite the challenges, Centene reported strong performance in its Medicare Advantage and Medicare Prescription Drug Plan businesses [4][5]. Group 2: Market Reaction - In pre-market trading, Centene's stock fell as much as 26% to $41.57, following a previous close of $56.65, where shares had gained 4.3% in the prior session [1][3]. - The market largely reacted negatively to the steep earnings cut, overshadowing the company's continued discipline in SG&A expenses that helped sustain revenue leverage [5]. Group 3: Industry Context - Centene's situation mirrors recent issues faced by UnitedHealth, which also withdrew its 2025 outlook due to a significant earnings miss related to surging Medicare Advantage claims [6][7]. - UnitedHealth's stock dropped over 20% following its earnings miss, marking its worst single-day performance in over two decades, compounded by concerns about leadership changes and transparency [7].

Core Insights - Centene has withdrawn its 2025 financial guidance amid potential cuts to Medicaid and Obamacare funding by the Republican-controlled Congress, which could impact health insurers significantly [2][3] - The health insurance sector has faced challenges in controlling costs for government-subsidized plans, with Centene's earnings expected to decline by at least $1.8 billion, or $2.75 per share, due to higher-than-anticipated medical costs and a sicker subscriber base [6][8] Company-Specific Insights - Centene's individual coverage market growth in over 20 states is lower than expected, leading to a significant earnings hit [6] - The company is experiencing rising costs in its Medicaid business, particularly in behavioral health, home health, and high-cost drugs, with expectations of a higher Medicaid Health Benefits Ratio in Q2 2025 compared to Q1 2025 [8] - Other health insurers, such as UnitedHealth Group, Humana, and CVS Health, are also facing similar challenges, with UnitedHealth suspending its financial outlook and CVS exiting the individual health insurance market [4][5] Industry-Wide Implications - The Congressional Budget Office estimates that the proposed budget cuts could result in nearly 12 million Americans losing health insurance coverage over the next decade, which would destabilize state Medicaid programs and local healthcare systems [8][9] - The trade group America's Health Insurance Plans (AHIP) warns that the proposed policies could lead to the largest rollback in healthcare coverage in U.S. history, resulting in millions losing access to affordable primary care [9]

Core Viewpoint - Centene has withdrawn its 2025 guidance due to lower-than-expected market growth in over 20 states, impacting its risk adjustment revenue expectations significantly [2][3]. Group 1: Market Analysis - An independent actuarial firm's analysis indicated that the overall market growth in 22 states where Centene operates is lower than anticipated, with morbidity levels being significantly higher than the company's previous assumptions [3]. - The analysis covers 22 of the 29 states where Centene sells individual coverage, representing approximately 72% of the company's marketplace membership [3]. Group 2: Financial Impact - Centene's preliminary analysis suggests a reduction in its full-year net risk adjustment revenue transfer expectation by about $1.8 billion, which translates to an adjusted diluted EPS impact of approximately $2.75 [4]. - The estimate is based on paid claims data through April 30, 2025, and includes projections for the remaining eight months of the year [4]. Group 3: Enrollment Trends - Centene's enrollment in Obamacare increased by 29% to 5.6 million members in the first quarter of the year, up from 4.3 million a year ago, despite a decrease of over 330,000 enrollees in Medicaid coverage [4]. Group 4: Legislative Context - The announcement coincides with the U.S. Senate passing a budget bill that could lead to 11 million Americans losing health insurance coverage, primarily affecting those enrolled in Obamacare and Medicaid, which Centene administers [5]. Group 5: Future Reporting - Centene is currently closing its second quarter and analyzing data, with plans to report its second quarter 2025 results and provide further insights on July 25 [6].

Exhibit 99.1 N E W S R E L E A S E Contact: Investor Relations Inquiries Media Inquiries Jennifer Gilligan Isabella Wiltse Senior Vice President, Finance & Investor Relations Vice President, Media & Public Relations (212) 549-1306 (314) 445-0790 FOR IMMEDIATE RELEASE CENTENE CORPORATION REPORTS FIRST QUARTER 2025 RESULTS -- Diluted EPS of $2.63; Adjusted Diluted EPS of $2.90 -- ST. LOUIS, April 25, 2025 -- Centene Corporation (NYSE: CNC) (the Company) announced today its financial results for the first quar ...

Core Viewpoint - Centene Corporation has withdrawn its previous 2025 GAAP and adjusted diluted earnings per share (EPS) guidance due to lower-than-expected market growth and higher morbidity rates in the Health Insurance Marketplace [1][3]. Group 1: Financial Guidance and Market Analysis - The company analyzed 2025 Marketplace data from Wakely, covering 22 of its 29 states, which represents approximately 72% of its Marketplace membership [2]. - The preliminary analysis indicates a reduction in the full year net risk adjustment revenue transfer expectation by approximately $1.8 billion, leading to an adjusted diluted EPS impact of about $2.75 [4]. - The company anticipates further reductions in net risk adjustment revenue transfer expectations for the remaining seven states based on observed morbidity trends [5]. Group 2: Future Pricing and Market Strategy - Centene has begun the process of refiling 2026 Marketplace rates to reflect a higher projected baseline of Marketplace morbidity than previously expected [6]. - The company expects to implement corrective pricing actions for 2026 in states representing a substantial majority of its Marketplace membership [6]. Group 3: Medicaid and Medicare Performance - The Medicaid business has seen a step-up in medical cost trends, particularly in behavioral health, home health, and high-cost drugs, with expectations for a higher Medicaid Health Benefits Ratio (HBR) in Q2 2025 compared to Q1 2025 [8]. - The Medicare Advantage and Medicare Prescription Drug Plan businesses are performing better than expected in Q2 2025, contributing positively to the company's overall financial performance [9]. Group 4: Upcoming Reporting - The company is in the process of closing Q2 2025 and will report results and provide additional insights on July 25, 2025 [10].

Centene (CNC) has been beaten down lately with too much selling pressure. While the stock has lost 5.2% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price mov ...

Group 1 - The Senate's rules committee recently rejected a key provision of the "grand plan" pushed by the Trump administration, which aimed to limit states from obtaining federal funds through taxes on Medicaid service providers [1] - The proposed provision sought to freeze the long-standing tax mechanism used by 49 states to collect taxes from hospitals and clinics providing Medicaid services, with the Senate version suggesting more aggressive adjustments to significantly reduce such tax scales [1] - The ruling from the Senate rules committee represents a significant setback for the legislative process of this controversial provision, as it is rare for the Senate to overturn the committee's decisions [1] Group 2 - The policy battle has significant implications for the U.S. health insurance industry, with stocks of companies deeply involved in Medicaid programs, such as Centene and Molina Healthcare, experiencing increases following the Senate's ruling [2] - National comprehensive insurers like UnitedHealth and Humana, as well as integrated healthcare groups like CVS Health and Cigna, also saw their stock prices rise in response to the news [2]

Market Overview - Significant turbulence in global financial markets due to escalating hostilities between Israel and Iran, particularly Israeli airstrikes on Iran's nuclear facilities [1] - Major U.S. indices experienced sharp declines, with the Dow Jones Industrial Average down 1.8% (769.81 points), S&P 500 down 1.1% (68.29 points), and Nasdaq Composite down 1.3% (255.67 points) [2] Investment Opportunities - Value stocks may become attractive during market uncertainty as they are often priced below intrinsic value, providing a margin of safety [3] - Effective valuation metric for value stocks is the Price to Cash Flow (P/CF) ratio, with companies like StoneCo Ltd. (STNE), Centene Corporation (CNC), CVS Health Corporation (CVS), and Pfizer Inc. (PFE) showing low P/CF ratios [4][10] Financial Health Metrics - P/CF ratio is preferred over Price/Earnings (P/E) as it reflects a company's financial health by adding back non-cash charges to net income [5][6] - Positive cash flow indicates increased liquidity, allowing companies to settle debts, reinvest, and undertake shareholder-friendly actions [7] Value Investing Strategy - A comprehensive investment strategy should include multiple metrics such as price-to-book ratio, price-to-earnings ratio, and price-to-sales ratio, along with a favorable Zacks Rank and Value Score [8][12] - Parameters for selecting true-value stocks include P/CF less than or equal to industry median, minimum stock price of $5, and various other financial ratios [9][11] Company Performance Insights - StoneCo (STNE) has a Zacks Rank 1, with projected sales and EPS growth of 10.9% and 4.4% respectively, and shares have risen 15.2% in the past year [14] - Centene (CNC) holds a Zacks Rank 2, with projected sales and EPS growth of 10.1% and 1.5% respectively, but shares have declined 19.1% in the past year [14] - CVS Health (CVS) also has a Zacks Rank 2, with projected sales and EPS growth of 3.5% and 12.6% respectively, and shares have increased by 10.4% in the past year [15] - Pfizer (PFE) carries a Zacks Rank 2, with projected sales and EPS declines of 0.6% and 1.6% respectively, and shares have fallen 9.1% in the past year [16]

Investors might want to bet on Centene (CNC) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Individual in ...