Analysts on Wall Street project that Centene (CNC) will announce quarterly earnings of $2.36 per share in its forthcoming report, representing an increase of 4.4% year over year. Revenues are projected to reach $43.47 billion, increasing 7.6% from the same quarter last year.
The current level reflects a downward revision of 1.7% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
In light of this perspective, let's dive into the average estimates of certain Centene metrics that are commonly tracked and forecasted by Wall Street analysts.
Based on the collective assessment of analysts, 'Revenues- Premium and service revenues' should arrive at $40.12 billion. The estimate points to a change of +10.4% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Revenues- Premium' of $39.35 billion. The estimate indicates a change of +10.8% from the prior-year quarter.
Analysts' assessment points toward 'Revenues- Service' reaching $768.54 million. The estimate indicates a year-over-year change of -4.9%.
The consensus estimate for 'Revenues- Premium tax' stands at $3.52 billion. The estimate points to a change of -13.4% from the year-ago quarter.
It is projected by analysts that the 'Total Medical Health (Benefits) loss Ratios -Total Ratio (HBR)' will reach 87.9%. Compared to the current estimate, the company reported 87.1% in the same quarter of the previous year.
According to the collective judgment of analysts, 'Membership Medicaid - Traditional Medicaid' should come in at 11.35 million. The estimate compares to the year-ago value of 11.75 million.
Analysts forecast 'Membership by line of business - Medicaid' to reach 12.94 million. Compared to the present estimate, the company reported 13.3 million in the same quarter last year.
Analysts predict that the 'Membership Medicaid - High Acuity Medicaid' will reach 1.59 million. Compared to the present estimate, the company reported 1.55 million in the same quarter last year.
The consensus among analysts is that 'SG&A Expense Ratio' will reach 8.4%. Compared to the present estimate, the company reported 8.9% in the same quarter last year.
The average prediction of analysts places 'Membership by line of business - Medicare' at 1.02 million. Compared to the current estimate, the company reported 1.15 million in the same quarter of the previous year.
The combined assessment of analysts suggests that 'Membership by line of business - Medicare PDP' will likely reach 7.43 million. Compared to the current estimate, the company reported 6.44 million in the same quarter of the previous year.
Analysts expect 'Membership Commercial - Commercial Group' to come in at 419.63 thousand. Compared to the current estimate, the company reported 422.7 thousand in the same quarter of the previous year.
View all Key Company Metrics for Centene here>>>
Centene shares have witnessed a change of -2.2% in the past month, in contrast to the Zacks S&P 500 composite's -8.9% move. With a Zacks Rank #3 (Hold), CNC is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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Centene Corporation (CNC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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