Centene (CNC) Beats Q1 Earnings and Revenue Estimates

Core Insights - Centene (CNC) reported quarterly earnings of $2.90 per share, exceeding the Zacks Consensus Estimate of $2.36 per share, and up from $2.26 per share a year ago, representing an earnings surprise of 22.88% [1] - The company achieved revenues of $46.62 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 7.24% and increasing from $40.41 billion year-over-year [2] Earnings Performance - Over the last four quarters, Centene has surpassed consensus EPS estimates three times, indicating strong earnings performance [2] - The company also topped consensus revenue estimates four times in the last four quarters, showcasing consistent revenue growth [2] Stock Performance - Centene shares have increased approximately 1.7% since the beginning of the year, contrasting with the S&P 500's decline of -6.8% [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.16 on revenues of $43.09 billion, while for the current fiscal year, the estimate is $7.13 on revenues of $172.83 billion [7] - The estimate revisions trend for Centene is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Medical - HMOs industry, to which Centene belongs, is currently ranked in the bottom 22% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Centene's stock performance [5]