Centene (CNC) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Centene (CNC) reported $35.56 billion in revenue for the quarter ended December 2022, representing a year-over-year increase of 9.2%. EPS of $0.86 for the same period compares to $1.01 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $35.59 billion, representing a surprise of -0.08%. The company delivered an EPS surprise of -1.15%, with the consensus EPS estimate being $0.87.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Centene performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Total Medical Health (Benefits) loss Ratios-Total Ratio(HBR): 88.7% versus 88.84% estimated by six analysts on average.
  • Membership by line of business- Medicare PDP: 4226 thousand versus the three-analyst average estimate of 4194.38 thousand.
  • Membership by line of business- Medicare: 1511.1 thousand versus the three-analyst average estimate of 1555.72 thousand.
  • Membership Commercial - Commercial Group: 441.1 thousand versus 434.74 thousand estimated by three analysts on average.
  • Membership Medicaid- High Acuity Medicaid: 1710 thousand compared to the 1708.32 thousand average estimate based on three analysts.
  • Membership by line of business-Medicaid: 15974.8 thousand versus the three-analyst average estimate of 15895.01 thousand.
  • Membership by line of business-Total at-risk membership: 24229.1 thousand versus 24160.47 thousand estimated by three analysts on average.
  • Membership Commercial - Commercial Marketplace: 2076.1 thousand versus the three-analyst average estimate of 2080.61 thousand.
  • Revenues-Premium: $31.88 billion compared to the $31.70 billion average estimate based on six analysts. The reported number represents a change of +10.4% year over year.
  • Revenues-Premium tax and health insurer fee: $2.01 billion versus $1.96 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a -3.2% change.
  • Revenues-Service: $1.67 billion versus the six-analyst average estimate of $1.74 billion. The reported number represents a year-over-year change of +3.7%.
  • Revenues-Premium and service revenues: $33.55 billion versus the six-analyst average estimate of $33.43 billion.

View all Key Company Metrics for Centene here>>>

Shares of Centene have returned -8.5% over the past month versus the Zacks S&P 500 composite's +5.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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