Centene (CNC) Reports Q2 Loss, Tops Revenue Estimates

Company Performance - Centene reported a quarterly loss of $0.16 per share, significantly below the Zacks Consensus Estimate of $0.68, and a decline from earnings of $2.42 per share a year ago, representing an earnings surprise of -123.53% [1] - The company posted revenues of $48.74 billion for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 10.93%, and up from $39.84 billion year-over-year [2] - Over the last four quarters, Centene has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance - Centene shares have declined approximately 55.8% since the beginning of the year, contrasting with the S&P 500's gain of 8.2% [3] - The current Zacks Rank for Centene is 5 (Strong Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.65 on revenues of $44.38 billion, and for the current fiscal year, it is $3.55 on revenues of $178.78 billion [7] - The trend of estimate revisions for Centene was unfavorable prior to the earnings release, which may impact future stock performance [6] Industry Context - The Medical - HMOs industry, to which Centene belongs, is currently ranked in the bottom 5% of over 250 Zacks industries, suggesting a challenging environment for the stock [8] - UnitedHealth Group, a competitor in the same industry, is expected to report quarterly earnings of $4.84 per share, reflecting a year-over-year decline of 28.8% [9]