Core Viewpoint - Analysts forecast that Cigna (CI) will report quarterly earnings of $6.39 per share, reflecting a year-over-year decline of 1.2%, with revenues expected to reach $60.8 billion, an increase of 6.2% compared to the previous year [1] Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been adjusted upward by 0.5%, indicating a reassessment of initial projections by covering analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong relationship between earnings estimate revisions and short-term stock price performance [3] Revenue Forecasts - Analysts estimate 'Revenues- Net investment income' at $255.45 million, down 11.9% year-over-year [5] - 'Revenues- Premiums' are projected to be $10.60 billion, reflecting an 8.6% decline from the prior year [5] - 'Revenues- Evernorth Health Services' are expected to reach $50.54 billion, showing a 9.3% increase year-over-year [5] - 'Revenues- Pharmacy' are forecasted at $45.58 billion, indicating an 8.4% increase from the previous year [6] - 'Revenues- Cigna Healthcare' are expected to be $12.16 billion, down 8.5% year-over-year [6] - 'Revenues- Fees and Other' are projected to reach $3.84 billion, reflecting a 15.6% increase year-over-year [6] - 'Revenues- Evernorth Health Services- Pharmacy' are estimated at $47.34 billion, indicating a 9.7% increase year-over-year [7] Medical Care and Customer Metrics - The 'Medical Care Ratio - Cigna Healthcare' is expected to be 82.4%, up from 79.9% in the same quarter last year [7] - 'Medical Customers - Total' is estimated at 18.33 million, down from 19.18 million in the previous year [8] - 'Medical Customers - International Health administrative services' are projected at 441.84 thousand, compared to 433 thousand last year [8] - 'Covered Lives By Funding Type - Medical Customers - International Health insured' is expected to be 1.23 million, up from 1.19 million year-over-year [9] - The estimate for 'Medical Customers - U.S. Healthcare administrative services' stands at 13.67 million, slightly up from 13.62 million last year [9] Stock Performance - Over the past month, Cigna shares have returned +1.8%, while the Zacks S&P 500 composite has returned -0.8% [9]

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of UnitedHealth Group due to allegations of materially misleading business information [1] Group 1: Investigation and Legal Action - Shareholders who purchased UnitedHealth securities may be entitled to compensation through a class action without any out-of-pocket fees [2] - The Rosen Law Firm is preparing a class action to seek recovery of investor losses [2] Group 2: Stock Performance and Earnings Report - UnitedHealth's stock fell 22.3% on April 17, 2025, after earnings fell short of Wall Street's expectations, primarily due to issues in its Medicare business [3] - The company substantially downgraded its projected results for 2025, which contributed to the stock decline [3] Group 3: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company at the time [3] - The firm was ranked No. 1 by ISS Securities Class Action Services for the number of settlements in 2017 and has consistently ranked in the top 4 since 2013, recovering hundreds of millions for investors [3] - In 2019, the firm secured over $438 million for investors, and its founding partner was recognized as a Titan of Plaintiffs' Bar by Law360 in 2020 [3]

Centene (CNC) Q1 2025 Earnings Call April 25, 2025 03:39 PM ET Company Participants Jennifer Gilligan - Senior Vice President, Finance & Investor RelationsSarah London - CEOAndrew Asher - Executive VP & CFOA.J. Rice - Managing DirectorDave Windley - Managing DirectorAndrew Mok - DirectorLance Wilkes - Managing DirectorJohn Stansel - VP - Equity ResearchMichael Halloran - Associate Director of Research Conference Call Participants Joshua Raskin - Research AnalystJustin Lake - Analyst - Healthcare ServicesAnn ...

Centene Corporation (NYSE:CNC) Q1 2025 Earnings Conference Call April 25, 2025 8:30 AM ET Company Participants Jennifer Gilligan - Senior Vice President, Finance and Investor Relations Sarah London - Chief Executive Officer Andrew Asher - Executive Vice President and Chief Financial Officer Conference Call Participants Josh Raskin - Nefron Research A.J. Rice - UBS Justin Lake - Wolfe Research Ann Hynes - Mizuho Securities Stephen Baxter - Wells Fargo David Windley - Jefferies Sarah James - Cantor Fitzgerald ...

Core Insights - Centene reported $46.62 billion in revenue for Q1 2025, a 15.4% year-over-year increase, with an EPS of $2.90 compared to $2.26 a year ago, exceeding Zacks Consensus Estimates for both revenue and EPS [1] - The company delivered a revenue surprise of +7.24% and an EPS surprise of +22.88% compared to analyst expectations [1] Financial Performance Metrics - Total Medical Health Benefits loss ratio was 87.1%, better than the estimated 87.9% [4] - Membership in High Acuity Medicaid stood at 1.59 million, matching analyst estimates [4] - Medicaid membership reached 12.96 million, slightly above the 12.94 million estimate [4] - SG&A Expense Ratio was 7.9%, lower than the estimated 8.4% [4] - Premium and service revenues totaled $42.49 billion, exceeding the $40.12 billion estimate, reflecting a 16.9% year-over-year increase [4] - Premium revenues were $41.71 billion, surpassing the $39.35 billion estimate, marking a 17.4% year-over-year change [4] - Service revenues were $777 million, slightly above the $768.54 million estimate, but a 3.8% decrease year-over-year [4] - Premium tax revenues were $4.13 billion, exceeding the $3.52 billion estimate, with a 1.5% year-over-year increase [4] - Commercial premium and service revenues reached $10.15 billion, significantly above the $9.04 billion estimate, representing a 30.9% year-over-year increase [4] - Medicare premium and service revenues were $8.76 billion, exceeding the $8.54 billion estimate, with a 47.6% year-over-year increase [4] - Medicaid premium and service revenues totaled $22.30 billion, above the $21.45 billion estimate, reflecting a 3.9% year-over-year increase [4] - Other premium and service revenues were $1.28 billion, exceeding the $1.22 billion estimate, with a 7.6% year-over-year increase [4] Stock Performance - Centene's shares returned +2.2% over the past month, contrasting with the Zacks S&P 500 composite's -4.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Core Viewpoint - Elevance Health, Inc. reported strong first-quarter 2025 results with adjusted EPS of $11.97, exceeding estimates and showing a year-over-year increase of 10.5% [1][2] Financial Performance - Operating revenues reached $48.8 billion, a 15.4% increase year over year, surpassing consensus estimates by 6% [1][4] - Premiums rose 14.5% year over year to $40.9 billion, exceeding the consensus mark of $38.7 billion [4] - Product revenues increased by 29.1% year over year to $5.8 billion, also beating estimates [4] - Net investment income grew 26.9% year over year to $590 million, surpassing the consensus of $461.3 million [4] - Total expenses were $46.1 billion, up 16.3% year over year, higher than estimates due to increased benefit expenses and operating costs [5] Membership and Operational Update - Medical membership stood at approximately 45.8 million, a 0.5% decline year over year, attributed to Medicaid attrition [3] - The reported membership figure fell short of the Zacks Consensus Estimate of 46.2 million [3] Segment Performance - Health Benefits segment revenues totaled $41.4 billion, an 11.2% year-over-year increase, beating estimates [6] - Carelon segment revenues reached $16.7 billion, a 38% increase year over year, driven by acquisitions and product revenue growth [7] - Corporate & Other segment reported revenues of $165 million with an operating loss of $140 million, wider than the previous year's loss [9] Financial Position - Cash and cash equivalents were $7.5 billion, down from $8.3 billion at the end of 2024 [10] - Total assets increased to $119.7 billion from $116.9 billion at the end of 2024 [10] - Long-term debt decreased to $28.1 billion from $29.2 billion [11] - Total equity grew to $42.6 billion from $41.4 billion at the end of 2024 [11] Capital Deployment - The company repurchased shares worth $880 million in Q1 2025, with $8.4 billion remaining under its buyback authorization [12] - A quarterly dividend of $1.71 per share was paid, totaling $386 million [12] 2025 Outlook - The company reaffirmed adjusted EPS guidance between $34.15 and $34.85, an increase from the 2024 figure of $33.04 [13] - Operating revenues are expected to grow in the high-single to low-double digits from $175.2 billion in 2024 [15] - Medical enrollment is forecasted to be between 45.8 and 46.7 million in 2025 [15]

Core Insights - Elevance Health reported $48.77 billion in revenue for Q1 2025, a year-over-year increase of 15.4% and a surprise of +5.95% over the Zacks Consensus Estimate of $46.03 billion [1] - The EPS for the same period was $11.97, compared to $10.64 a year ago, with an EPS surprise of +6.78% against the consensus estimate of $11.21 [1] Revenue and Membership Metrics - Total Medical Membership stood at 45.83 million, slightly below the estimated 46.24 million [4] - Medicaid Medical Membership was 8.86 million, close to the estimate of 8.89 million [4] - Medicare Medical Membership was 876 thousand, exceeding the estimate of 866.49 thousand [4] - Commercial Risk-Based Medical Membership was 3.64 million, below the estimate of 3.75 million [4] Revenue Breakdown - Premium revenues reached $40.89 billion, surpassing the average estimate of $38.70 billion, reflecting a year-over-year change of +14.5% [4] - Service fees totaled $2.07 billion, slightly below the estimate of $2.13 billion, showing a -0.4% change year-over-year [4] - Net investment income was $590 million, exceeding the estimate of $461.32 million, with a year-over-year increase of +26.9% [4] - Product revenue was $5.81 billion, above the estimate of $5.11 billion, representing a +29.1% change year-over-year [4] Operating Revenue Performance - Total operating revenue from Carelon Services was $6.54 billion, exceeding the estimate of $5.87 billion, with a year-over-year change of +63% [4] - CarelonRx generated $10.12 billion in operating revenue, surpassing the estimate of $9.40 billion, reflecting a +25.4% change year-over-year [4] - Health Benefits operating revenue was $41.43 billion, above the estimate of $39.82 billion, with a year-over-year increase of +11.2% [4] - Carelon's total operating revenue was $16.65 billion, exceeding the estimate of $15.27 billion, representing a +37.9% change year-over-year [4]

Elevance Health (ELV) Q1 2025 Earnings Call April 22, 2025 08:30 AM ET Company Participants Nathan Rich - Vice President of IRGail Boudreaux - President & Chief Executive OfficerMark Kaye - Executive VP & CFOA.J. Rice - Managing DirectorLance Wilkes - Managing DirectorPeter Haytaian - Executive VP and President of Carelon & CarelonRxAndrew Mok - DirectorLisa Gill - Managing DirectorBen Hendrix - Vice PresidentFelicia Norwood - Executive VP & President of Government Health BenefitsWhit Mayo - Senior Managing ...

Financial Data and Key Metrics Changes - In Q1 2025, GAAP diluted earnings per share was $9.61, and adjusted diluted earnings per share was $11.97, reflecting year-over-year growth of more than 10% [25] - Operating revenue for the quarter was $48.8 billion, an increase of over 15%, driven by higher premium yields in the health benefits segment and growth in Medicare Advantage and individual ACA membership [26] - The consolidated benefit expense ratio was 86.4%, an increase of 80 basis points year over year, primarily due to higher cost trends in the Medicaid business [27] Business Line Data and Key Metrics Changes - Medicaid business is making progress on rate alignment, with April adjustments coming in as expected [16] - Medicare Advantage performance was consistent with expectations, with strong retention and targeted growth [17] - Health benefits operating gain was $2.2 billion, slightly declining due to higher Medicaid costs, while Calon's operating gain grew 34% to $1.1 billion [29] Market Data and Key Metrics Changes - Individual ACA membership grew approximately 11% sequentially, but a moderation in membership is anticipated in Q2 due to lower effectuation rates [25][56] - The company is expanding into three new states to support broader strategy for coordinated ACA and Medicaid coverage [19] Company Strategy and Development Direction - The company is focused on transforming healthcare experiences to be simpler, more affordable, and more human, with sustained investments in patient advocacy solutions and digital platforms [9][10] - Expansion of value-based oncology care model to Medicare Advantage is planned, following success in the commercial sector [12] - Carillon continues to be a strategic growth engine, significantly expanding relationships with external payers [20] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook for Medicare Advantage, emphasizing strong retention and disciplined growth [17] - Elevated Medicare costs are manageable, with consistent tracking of claims data to identify emerging patterns [39][41] - The company remains disciplined in its approach to benefit design and risk management, ensuring alignment with healthcare needs [129] Other Important Information - The company was named to Fortune's 100 Best Companies to Work For and recognized as one of America's most innovative companies [22] - Operating cash flow totaled $1 billion, with expectations for approximately $8 billion for the year remaining unchanged [32] Q&A Session Summary Question: Medicare Advantage trends and IRA impact - Management indicated that Medicare costs remain elevated but manageable, with no material changes in expectations [39][41] Question: Carillon Services growth and cross-sales - Carillon Services experienced over 60% growth, with strong internal and external expansion [47] Question: Effectuation rates and membership attrition - Membership attrition is projected in the mid-single digit percent range in early Q2, with stabilization expected thereafter [56] Question: Medicaid MLR margin trends - Medicaid trends remain elevated but decelerated as expected, with improvements anticipated in the latter half of the year [117] Question: Part D changes and utilization behavior - Management is comfortable with the mix of Medicare Advantage membership and has not observed substantial variations in utilization [140]

Financial Data and Key Metrics Changes - The company revised its adjusted earnings per share outlook for 2025 to $26 to $26.50, reflecting performance challenges primarily in its Medicare businesses [7][29] - The consolidated revenue outlook remains at $450 billion to $455 billion, with expectations for UnitedHealthcare and Optum Rx revenues to exceed initial views, offsetting a reduced outlook for Optum Health [30][31] - The full year medical care ratio is now expected to be 87.5% plus or minus 50 basis points, indicating higher utilization across senior populations [31] Business Line Data and Key Metrics Changes - UnitedHealthcare's Medicare Advantage business is projected to serve an additional 800,000 people in 2025, while Optum Health aims to add 650,000 net new patients to value-based care arrangements [16][43] - Optum Rx revenues grew by 14%, exceeding $35 billion for the quarter, with script growth of 3% driven by customer retention and new customer wins [44] Market Data and Key Metrics Changes - The company noted a significant increase in care activity in its Medicare Advantage business, with first quarter indications suggesting care activity increased at twice the rate anticipated [10][29] - The company experienced a sharp increase in elective care activity, particularly in the group Medicare Advantage segment, attributed to higher member premiums driven by Medicare funding cuts [36][66] Company Strategy and Development Direction - The company is focusing on improving engagement with complex patients and enhancing clinical workflows to transition effectively to the new CMS risk model [15][39] - The company continues to innovate in its service offerings, such as the HouseCalls program, which provides in-home clinical visits to seniors [21][22] - The company emphasizes the importance of transparency and affordability in healthcare, aiming to reduce costs for consumers while maintaining high-quality care [28][132] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with current performance but remains committed to improving results throughout 2025 and into 2026, targeting long-term earnings per share growth of 13% to 16% [46][47] - The management acknowledged the challenges posed by recent Medicare funding cuts and the need to better anticipate and address second-order effects in the market [90][96] Other Important Information - The company is actively engaging with state customers to address Medicaid funding issues and is optimistic about recent rate adjustments aligning more closely with member acuity [41][130] - The company is concerned about legislative changes affecting pharmacy benefit managers (PBMs) and their potential impact on patient access to medications [126][127] Q&A Session Summary Question: Medicare Advantage cost trend expectations - Management indicated that care levels were anticipated to be consistent with 2024 but have seen a significant increase in the first quarter, particularly in physician and outpatient services [49][55] Question: Connection between primary care visits and Optum Health performance - Management clarified that while primary care visits have increased, the challenges in Optum Health are due to the profile of new value-based patients and the impact of the V28 phase [58][68] Question: Impact of elevated care on group Medicare Advantage - Management confirmed that the elevated care activity is primarily observed in community and group Medicare Advantage, influenced by premium increases [98][102] Question: Long-term growth rate recovery - Management expressed confidence in returning to long-term growth rates, supported by improved 2026 rates and ongoing engagement with state partners [106][110] Question: Medicare Advantage margins and timeline for recovery - Management stated that margins for Medicare Advantage are still within targeted ranges for 2025, with expectations to return to historical planning targets in 2026 [114][118] Question: Policy implications of PBM reform and Medicaid funding - Management highlighted their leadership in transparency and affordability in the PBM space and emphasized the importance of maintaining access to medications for patients [122][130]