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Yahoo
19-05-2025
- Business
- Yahoo
Q1 Rundown: Centene (NYSE:CNC) Vs Other Health Insurance Providers Stocks
Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let's have a look at Centene (NYSE:CNC) and its peers. Upfront premiums collected by health insurers lead to reliable revenue, but profitability ultimately depends on accurate risk assessments and the ability to control medical costs. Health insurers are also highly sensitive to regulatory changes and economic conditions such as unemployment. Going forward, the industry faces tailwinds from an aging population, increasing demand for personalized healthcare services, and advancements in data analytics to improve cost management. However, continued regulatory scrutiny on pricing practices, the potential for government-led reforms such as expanded public healthcare options, and inflation in medical costs could add volatility to margins. One big debate among investors is the long-term impact of AI and whether it will help underwriting, fraud detection, and claims processing or whether it may wade into ethical grey areas like reinforcing biases and widening disparities in medical care. The 11 health insurance providers stocks we track reported a strong Q1. As a group, revenues beat analysts' consensus estimates by 3% while next quarter's revenue guidance was in line. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.4% since the latest earnings results. Serving nearly 1 in 15 Americans through its government healthcare programs, Centene (NYSE:CNC) is a healthcare company that manages government-sponsored health insurance programs like Medicaid and Medicare for low-income and complex-needs populations. Centene reported revenues of $46.62 billion, up 15.4% year on year. This print exceeded analysts' expectations by 8.3%. Overall, it was a strong quarter for the company with full-year revenue guidance exceeding analysts' expectations and a solid beat of analysts' EPS estimates. "Our first quarter results demonstrate the resiliency of Centene's platform and the progress we are making as an organization while navigating a dynamic policy landscape," said Chief Executive Officer of Centene, Sarah M. London. Centene achieved the highest full-year guidance raise of the whole group. The company lost 656,600 customers and ended up with a total of 27.94 million. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $61. Is now the time to buy Centene? Access our full analysis of the earnings results here, it's free. With over 9,000 retail pharmacy locations serving as neighborhood health destinations across America, CVS Health (NYSE:CVS) operates retail pharmacies, provides pharmacy benefit management services, and offers health insurance through its Aetna subsidiary. CVS Health reported revenues of $94.59 billion, up 7% year on year, outperforming analysts' expectations by 1.5%. The business had an exceptional quarter with a solid beat of analysts' same-store sales estimates and an impressive beat of analysts' EPS estimates. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 6.5% since reporting. It currently trades at $62.36. Is now the time to buy CVS Health? Access our full analysis of the earnings results here, it's free. With over 100 million people served across its various businesses and a workforce of more than 400,000, UnitedHealth Group (NYSE:UNH) operates a health insurance business and Optum, a healthcare services division that provides everything from pharmacy benefits to primary care. UnitedHealth reported revenues of $109.6 billion, up 9.8% year on year, falling short of analysts' expectations by 1.7%. It was a softer quarter as it posted a significant miss of analysts' full-year EPS guidance estimates. UnitedHealth delivered the weakest performance against analyst estimates in the group. The company added 395,000 customers to reach a total of 54.12 million. As expected, the stock is down 50.9% since the results and currently trades at $287.66. Read our full analysis of UnitedHealth's results here. Founded in 1980 as a provider for underserved communities in Southern California, Molina Healthcare (NYSE:MOH) provides managed healthcare services primarily to low-income individuals through Medicaid, Medicare, and Marketplace insurance programs across 21 states. Molina Healthcare reported revenues of $11.15 billion, up 12.2% year on year. This result surpassed analysts' expectations by 2.6%. More broadly, it was a satisfactory quarter as it also logged a decent beat of analysts' EPS estimates but customer base in line with analysts' estimates. The company added 217,000 customers to reach a total of 5.75 million. The stock is down 1.9% since reporting and currently trades at $325.34. Read our full, actionable report on Molina Healthcare here, it's free. Founded in 2013 with a mission to transform healthcare for seniors, Alignment Healthcare (NASDAQ:ALHC) provides Medicare Advantage health plans for seniors with features like concierge services, transportation benefits, and technology-driven care coordination. Alignment Healthcare reported revenues of $926.9 million, up 47.5% year on year. This number beat analysts' expectations by 4.4%. It was a very strong quarter as it also recorded an impressive beat of analysts' EPS estimates. Alignment Healthcare pulled off the fastest revenue growth among its peers. The company added 28,400 customers to reach a total of 217,500. The stock is down 10.2% since reporting and currently trades at $15.00. Read our full, actionable report on Alignment Healthcare here, it's free. The Fed's interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump's presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. 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Forbes
25-04-2025
- Business
- Forbes
Obamacare Leads Centene To $1.3 Billion Profit And A 2025 Revenue Boost
Centene reported first quarter profits of $1.3 billion as membership and premium revenue grew thanks ... More to a big increase in Obamacare enrollment, the health insurer said Friday, April 25, 2025. In this photo, the building housing Centene Corporation headquarters is seen Thursday, July 2, 2015, in Clayton, Mo. (AP Photo/Jeff Roberson) Centene reported first quarter profits of $1.3 billion as membership and premium revenue grew thanks to a big increase in Obamacare enrollment, the health insurer said Friday. Centene's enrollment in individual coverage under the Affordable Care Act, also known as Obamacare, grew what Centene calls its 'commercial marketplace' business to 5.6 million members from 4.3 a year-ago. That increase of more than two million health plan members helped overcome a decrease of more than 330,000 enrollees in Centene's Medicaid coverage for poor Americans. The big jump in enrollees triggered Centene to increase its 2025 premium and service revenues guidance range by $6 billion to a range of $ to $166 billion. Much of that increase, or $5 billion, is additional 'marketplace premium revenue due to outperformance in enrollment throughout the first quarter,' Centene, which sells an array of government subsidized health benefits, said. Meanwhile, Centene said 'outperformance in the Medicare Advantage annual enrollment period' will add $1 billion of additional premium revenue. In the first quarter of this year, Centene's net income rose to $1.3 billion, or $2.63 per share, compared to $1.1 billion, or $2.17 in the year-ago period. 'For the first quarter of 2025, premium and service revenues increased 17% to $42.5 billion from $36.3 billion in the comparable period of 2024,' Centene said in its earnings report. 'The increase was primarily driven by premium and membership growth in the (prescription drug plan) business along with strong product positioning and overall market growth in the Marketplace business.' Centene, which is a big national player in providing Medicaid benefits to poor Americans, saw Medicaid enrollment drop slightly to 12.9 million compared to 13.3 million in the year ago. "Our first quarter results demonstrate the resiliency of Centene's platform and the progress we are making as an organization while navigating a dynamic policy landscape," said Centene's chief executive officer Sarah M. London. "We are pleased to reiterate our full year 2025 adjusted diluted earnings per share outlook of greater than $7.25 and continue to see attractive opportunities to grow from the strength of our core businesses in the years to come."
Associated Press
17-03-2025
- Health
- Associated Press
CENTENE SUBSIDIARY MERIDIAN HEALTH PLAN OF ILLINOIS AWARDED CONTRACT TO SERVE DUALLY ELIGIBLE MEDICARE AND MEDICAID MEMBERS ACROSS THE STATE
Centene Corporation (NYSE: CNC), a leading healthcare enterprise committed to helping people live healthier lives, announced today that its subsidiary, Meridian Health Plan of Illinois, Inc. (Meridian), has been selected by the Illinois Department of Healthcare and Family Services (HFS) to continue providing Medicare and Medicaid services for dually eligible Illinoisans through a Fully Integrated Dual Eligible Special Needs Plan (D-SNP). The D-SNP program will provide services and support statewide for dually eligible members who qualify for Medicare and Medicaid, as well as dually eligible Managed Long Term Services and Supports (MLTSS) members, under a single managed care organization. The new D-SNP contract is expected to begin on Jan. 1, 2026, and operate through Dec. 31, 2029, with the state having the option to renew for intervals of six months to five and a half years for a total contract term of up to 10 years. 'We look forward to working with HFS to address the unique needs of Illinoisans who are dually eligible for Medicare and Medicaid,' said Centene Chief Executive Officer (CEO) Sarah M. London. 'This award is a testament to our experience and ongoing commitment to fully integrate care for people with complex healthcare needs and to build stronger connections between medical, behavioral, psychosocial and environmental care for this community.' Meridian has been serving members in Illinois since 2008 and is among four health plans selected by HFS to deliver access to high-quality managed care services to 77,000 Medicare-Medicaid-eligible Illinoisans through the state's new D-SNP product across the state. Beginning in 2027, 60,000 dually eligible MLTSS individuals will be included in the D-SNP plan. As of February 2025, Meridian serves more than 13,000 Medicaid-Medicare members and more than 11,000 dually eligible MLTSS members through the Illinois HealthChoice Medicaid program. Under the D-SNP contract, Meridian will manage coverage for services to address members' needs on a holistic level to eradicate barriers to healthcare, improve behavioral health and reduce disparities in health outcomes. 'We are proud to continue to connect our dually eligible members to a comprehensive range of services to support their physical, mental and emotional well-being,' said Meridian CEO and Plan President Cristal Gary. 'Our focus on local, culturally sensitive care helps members get the services and support they need, where they are. Meridian is committed to continuously innovating programs and processes to ensure our members achieve the best health outcomes possible.' Additional Centene Corporation companies Meridian Health Plan of Michigan, Inc. and Buckeye Health Plan in Ohio were recently selected to provide integrated services for dually eligible individuals in their respective states. About Centene Corporation Centene Corporation, a Fortune 500 company, is a leading healthcare enterprise that is committed to helping people live healthier lives. The Company takes a local approach – with local brands and local teams – to provide fully integrated, high-quality and cost-effective services to government-sponsored and commercial healthcare programs, focusing on under-insured and uninsured individuals. Centene offers affordable and high-quality products to more than 1 in 15 individuals across the nation, including Medicaid and Medicare members (including Medicare Prescription Drug Plans) as well as individuals and families served by the Health Insurance Marketplace. Centene uses its investor relations website to publish important information about the Company, including information that may be deemed material to investors. Financial and other information about Centene is routinely posted and is accessible on Centene's investor relations website, About Meridian Health Plan of Illinois Meridian Health Plan of Illinois, Inc. and its family of health plans provide government-sponsored managed care services to families, children, seniors, and individuals with complex medical needs. This includes Meridian's Medicaid and Medicare-Medicaid plans, and YouthCare HealthChoice Illinois. YouthCare is a specialized program designed to address the healthcare needs of Illinois Department of Children and Family Services (DCFS) youth in out-of-home placement and former foster youth. Meridian connects members to care and offers comprehensive services to support lifelong health and wellness. Meridian is a Centene Corporation company. Learn more at Forward-Looking Statements All statements, other than statements of current or historical fact, contained in this press release are forward-looking statements. Without limiting the foregoing, forward-looking statements often use words such as 'believe,' 'anticipate,' 'plan,' 'expect,' 'estimate,' 'intend,' 'seek,' 'target,' 'goal,' 'may,' 'will,' 'would,' 'could,' 'should,' 'can,' 'continue' and other similar words or expressions (and the negative thereof). Centene Corporation and its subsidiaries (Centene, the Company, our or we) intends such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and we are including this statement for purposes of complying with these safe-harbor provisions. In particular, these statements include, without limitation, statements about our expected contract start dates and terms, our future operating or financial performance, changes in laws and regulations (including but not limited to, renewal and modification of the enhanced advance premium tax credits associated with the Marketplace product), market opportunity, competition, expected activities in connection with completed and future acquisitions and dispositions, our investments and the adequacy of our available cash resources. These forward-looking statements reflect our current views with respect to future events and are based on numerous assumptions " and assessments made by us in light of our experience and perception of historical trends, current conditions, business strategies, operating environments, future developments and other factors we believe appropriate. By their nature, forward-looking statements involve known and unknown risks and uncertainties and are subject to change because they relate to events and depend on circumstances that will occur in the future, including economic, regulatory, competitive and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions. All forward-looking statements included in this press release are based on information available to us on the date hereof. Except as may be otherwise required by law, we undertake no obligation to update or revise the forward-looking statements included in this press release, whether as a result of new information, future events, or otherwise, after the date hereof. You should not place undue reliance on any forward-looking statements, as actual results may differ materially from projections, estimates, or other forward-looking statements due to a variety of important factors, variables and events including, but not limited to: our ability to design and price products that are competitive and/or actuarially sound including but not limited to any impacts resulting from Medicaid redeterminations; our ability to maintain or achieve improvement in the Centers for Medicare and Medicaid Services (CMS) Star ratings and maintain or achieve improvement in other quality scores in each case that could impact revenue and future growth; our ability to accurately predict and effectively manage health benefits and other operating expenses and reserves, including fluctuations in medical utilization rates; competition, including for providers, broker distribution networks, contract reprocurements and organic growth; our ability to adequately anticipate demand and timely provide for operational resources to maintain service level requirements in compliance with the terms of our contracts and state and federal regulations; our ability to manage our information systems effectively; disruption, unexpected costs, or similar risks from business transactions, including acquisitions, divestitures, and changes in our relationships with third-party vendors; disruption, unexpected costs, or similar risks from business transactions, including acquisitions, divestitures, and changes in our relationships with third-party vendors; impairments to real estate, investments, goodwill, and intangible assets; changes in senior management, loss of one or more key personnel or an inability to attract, hire, integrate and retain skilled personnel; membership and revenue declines or unexpected trends; rate cuts, insufficient rate changes or other payment reductions or delays by governmental payors and other risks and uncertainties affecting our government businesses; changes in healthcare practices, new technologies, and advances in medicine; our ability to effectively and ethically use artificial intelligence and machine learning in compliance with applicable laws; increased healthcare costs; inflation and interest rates; the effect of social, economic, and political conditions and geopolitical events, including as a result of changes in U.S. presidential administrations or Congress; changes in market conditions; changes in federal or state laws or regulations, including changes with respect to income tax reform or government healthcare programs as well as changes with respect to the Patient Protection and Affordable Care Act and the Health Care and Education Affordability Reconciliation Act (collectively referred to as the ACA) and any regulations enacted thereunder, including the timing and terms of renewal or modification of the enhanced advance premium tax credits or program integrity initiatives that could have the effect of reducing membership or profitability of our products; uncertainty concerning government shutdowns, debt ceilings or funding; tax matters; disasters, climate-related incidents, acts of war or aggression or major epidemics; changes in expected contract start dates and terms; changes in provider, broker, vendor, state, federal, and other contracts and delays in the timing of regulatory approval of contracts, including due to protests and our ability to timely comply with any such changes to our contractual requirements or manage any unexpected delays in regulatory approval of contracts; the expiration, suspension, or termination of our contracts with federal or state governments (including, but not limited to, Medicaid, Medicare or other customers); the difficulty of predicting the timing or outcome of legal or regulatory audits, investigations, proceedings or matters, including, but not limited to, our ability to resolve claims and/or allegations made by states with regard to past practices on acceptable terms, or at all, or whether additional claims, reviews or investigations will be brought by states, the federal government or shareholder litigants, or government investigations; challenges to our contract awards; cyber-attacks or other data security incidents or our failure to comply with applicable privacy, data or security laws and regulations; the exertion of management's time and our resources, and other expenses incurred and business changes required in connection with complying with the terms of our contracts and the undertakings in connection with any regulatory, governmental, or third party consents or approvals for acquisitions or dispositions; any changes in expected closing dates, estimated purchase price, or accretion for acquisitions or dispositions; losses in our investment portfolio; restrictions and limitations in connection with our indebtedness; a downgrade of our corporate family rating, issuer rating or credit rating of our indebtedness; the availability of debt and equity financing on terms that are favorable to us and risks and uncertainties discussed in the reports that Centene has filed with the Securities and Exchange Commission (SEC). This list of important factors is not intended to be exhaustive. We discuss certain of these matters more fully, as well as certain other factors that may affect our business operations, financial condition, and results of operations, in our filings with the SEC, including our annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. Due to these important factors and risks, we cannot give assurances with respect to our future performance, including without limitation our ability to maintain adequate premium levels or our ability to control our future medical and selling, general and administrative costs.
