Centene(US:CNC) Prnewswireยท2025-07-07 13:23Core Viewpoint - Centene Corp. experienced a significant share price drop of 40% after withdrawing its revenue guidance due to unexpected data from an independent actuary, raising concerns about potential violations of securities laws [1][2][5]. Company Overview - Centene Corp. positions itself as a leading healthcare enterprise, focusing on providing integrated services to government-sponsored and commercial healthcare programs, particularly for under-insured and uninsured individuals [3]. - The company offers products to individuals, including Medicare and Medicaid members, as well as those insured by the Health Insurance Marketplace [3]. Financial Guidance and Adjustments - On April 25, 2025, Centene raised its 2025 revenue guidance by $6 billion and reaffirmed its GAAP diluted EPS guidance floor of greater than $6.19 and adjusted diluted EPS guidance floor of greater than $7.25 [4]. - On July 1, 2025, Centene withdrew its previous guidance, citing new information regarding Health Insurance Marketplace data [5]. Market Data and Implications - The company analyzed initial 2025 industry Marketplace data from Wakely, covering 22 states, which represented approximately 72% of its Marketplace membership [6]. - The analysis revealed that market growth in these states was lower than expected, with significantly higher implied market morbidity than previously assumed, affecting risk adjustment revenue transfer [7]. - Centene estimated a reduction in its full-year net risk adjustment revenue transfer expectation by approximately $1.8 billion, impacting adjusted diluted EPS by about $2.75 [8]. Investor Reaction - Following the announcement of the guidance withdrawal and the negative market data, Centene's share price fell by 40%, equating to a loss of $22.87 per share in a single day [9].