Latest news with #CenteneCorp
Bloomberg
07-07-2025
- Business
- Bloomberg
S&P Says It's Looking at Cutting Insurer Centene to Junk Status
S&P Global Ratings said it's considering cutting Centene Corp.'s credit ratings to junk, citing the health insurer's suspending its 2025 profit outlook. Centene said last week that it was withdrawing its previous forecast for its earnings for the year, because insurance market trends were veering from its assumptions, particularly in the plans it offers under the Affordable Care Act. Without that information, S&P has less confidence that the insurer will build the capital it needs quickly enough, the bond grader said in a statement on Monday.
Bloomberg
02-07-2025
- Automotive
- Bloomberg
Stock Movers: Centene, Tesla, Coinbase
On this edition of Stock Movers: - Health insurer Centene Corp. (CNC) stock plunged as they shocked investors Tuesday when it withdrew its profit outlook on precipitously rising risks from Affordable Care Act plans, sending shares plummeting the most on record. The company appears to have been badly caught off guard by the impact of US government actions. It's an ominous sign for insurers, whose purpose is to price for risk but have lately been blindsided by it. - Tesla (TSLA) shares rally after after the carmaker posted a less drastic decline in vehicle sales than the most pessimistic analysts feared. The company delivered 384,122 vehicles during the last three months, down 13% from a year earlier. While that leaves Tesla in a deep hole to dig out from to avoid another annual drop, some investors were braced for a more than 20% plunge. 'We're at the bottom here,' Gene Munster, managing partner of Deepwater Asset Management, said on Bloomberg Television. - Coinbase (COIN) and other crypto-linked stocks rose today. Specifically, Coinbase users in Australia can now select PayPal as a payment option to buy and sell cryptocurrencies. Last week, shares hit first record since 2021 after the US Senate passed legislation for stablecoins pegged to the dollar and in May, the company was added to the S&P 500.
Bloomberg
02-07-2025
- Business
- Bloomberg
Stock Movers: Elevance, Verint, Apple
On this episode of Stock Movers: - Elevance Health (ELV) is the biggest downside mover this morning after Centene Corp. (CNC) pulled its 2025 guidance due to insurance market trends that differed from its assumptions, threatening $1.8 billion in revenue. Both shares are diving lower. Centene also reported a "step up" in Medicaid costs, which it expects will increase a key measure of medical expenses in the second quarter. - Verint Systems (VRNT) is higher in the premarket as buyout firm Thoma Bravo is in talks to acquire Verint Systems Inc., a maker of call center software, according to people familiar with the matter. Thoma Bravo is negotiating the terms of a potential deal with Verint, which is working with an adviser, said the people, who asked not to be identified discussing confidential information. - Apple (APPL) shares are higher as it gets an upgrade on Wall Street. Jefferies raised its recommendation on the tech giant to hold from underperform. Analyst Edison Lee says a good 3QFY25 could keep AAPL stock stable in the near-term - Constellation Brands (STZ) is lower this morning after it posted a small EPS miss in its latest earnings, which analysts attribute to weaker-than-expected sales for its beer. The report was a mixed bag as the company continues to weather the storm of weakening end markets and poor macro data, analysts add.
Bloomberg
01-07-2025
- Business
- Bloomberg
Centene Plunges After Insurer Withdraws 2025 Guidance
Centene Corp. shares plunged after the health insurer pulled its 2025 guidance following an early analysis of data from the Affordable Care Act marketplace that showed a significant revenue hit from a risk-sharing mechanism, the company said in a statement. Data from 22 states showed an impact of $1.8 billion, or $2.75 per share in adjusted earnings, the company said.
Yahoo
05-02-2025
- Business
- Yahoo
Centene Corp (CNC) Q4 2024 Earnings Call Highlights: Strong EPS and Revenue Guidance Boost
Fourth-Quarter Adjusted Diluted EPS: $0.80 Full-Year 2024 Adjusted Diluted EPS: $7.17 Fourth-Quarter Premium and Service Revenue: $36.3 billion Full-Year 2025 Revenue Guidance Increase: $4 billion Full-Year 2025 Adjusted Diluted EPS Guidance: Greater than $7.25 Medicaid Membership: 13 million Americans Medicaid HBR (Health Benefits Ratio) Q4 2024: 93.4% Full-Year 2024 Medicaid HBR: 92.5% Medicare Enrollment Expectation for 2025: Low to mid-900,000 Medicare Part D 2025 Revenue Expectation: Approximately $16 billion Marketplace Membership Peak Q1 2025: Slightly above 5 million members Adjusted SG&A Expense Ratio Q4 2024: 8.9% Cash Flow Provided by Operations Full-Year 2024: $154 million Share Repurchase Full-Year 2024: 42 million shares for $3 billion Debt to Adjusted EBITDA Year-End 2024: 2.9 times Medical Claims Liability Year-End 2024: $18.3 billion Days in Claims Payable Year-End 2024: 53 days Warning! GuruFocus has detected 5 Warning Signs with CNC. Release Date: February 04, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Centene Corp (NYSE:CNC) reported strong fourth-quarter adjusted diluted EPS of $0.80 and full-year 2024 adjusted diluted EPS of $7.17, demonstrating the durability of its earnings power. The company increased its full-year 2025 revenue guidance by $4 billion, driven by better-than-expected results during the Medicare annual enrollment period and a program expansion in Medicaid. Centene Corp (NYSE:CNC) achieved a mid-4% composite rate adjustment for Medicaid, with expectations for a full-year 2025 composite rate adjustment of 3% to 4%, indicating strong negotiation with state partners. The Medicare segment showed significant improvement, with 55% of members associated with 3.5-star plans or better, up from 23% last year, reflecting enhanced operational precision. The Marketplace segment demonstrated strong performance, with January effectuated enrollment slightly stronger than expected, positioning the company for a peak membership above five million members in the first quarter of 2025. Centene Corp (NYSE:CNC) faced challenges with Medicaid redeterminations, which temporarily increased the Medicaid HBR to 92.5% for the full year 2024, impacting earnings power. Operating cash flow for the full year was only $154 million, affected by the timing of pharmacy rebate collections and the buildup of state premium payments receivable. The company is cautious about the potential impact of program integrity changes, such as failure-to-report processes, which could affect effectuated enrollment in the Marketplace segment. Centene Corp (NYSE:CNC) is still navigating the appeals process for Medicaid contracts in Texas and Georgia, which could impact future revenue and growth opportunities. Despite strong revenue growth, the company's EPS guidance for 2025 remains unchanged, indicating potential conservatism or challenges in translating revenue growth into earnings. Q: Can you provide insights into your expectations for total exchange market growth in 2025 and the subsidy verification process? A: CMS reported a 13% January-to-January enrollment growth. We focus on effectuated membership due to program integrity changes. The agent-of-record lock and failure-to-report processes may have a longer tail, impacting Q2. We are starting from a strong position but need a few more months to see where membership settles. Q: What drove the prior-year development (PYD) increase in the quarter, and can you explain the Medicaid retros that didn't hit in Q4? A: The PYD increase was over $400 million, driven by a CSR settlement. The Medicaid retros were expected late in Q4 but didn't materialize. We are not counting on them for 2025, but any materialization would benefit 2025. Q: How should we think about Medicaid rate assumptions for the rest of the year? A: We expect a full-year 2025 composite rate of 3% to 4%, with stronger rates in the 1-1 cohort. Conversations with state partners are constructive, and we are confident in achieving sufficient funding to support members. Q: Can you discuss the seasonality expectations for 2025, particularly for Medicaid MLR? A: For Medicaid, we expect the back half of 2025 to be better than the front half. The front-half HBR of 2025 should be better than the back half of 2024. Overall, we anticipate a 60/40 earnings per share split between the first and second halves of the year. Q: Can you clarify the impact of enhanced APTCs on ACA membership and the potential for buydowns? A: Without mitigation, the expiration of enhanced APTCs could lead to a 20% to 30% membership hit. Various scenarios are being considered, including different FPL caps and buydown implications. We are preparing for the next OE cycle and may file two sets of bids. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
