Centene gains after outlining solid growth at Investor Day

Shares of Centene Corporation (NYSE:CNC ) saw an uptick of 2% in pre-market trading Thursday after the company released its financial outlook, exceeding Wall Street's earnings expectations. During its investor day, Centene provided an adjusted diluted earnings per share (EPS) forecast for 2025 of over $7.25, surpassing the consensus estimate of $7.05. The healthcare enterprise also reaffirmed its 2024 adjusted diluted EPS guidance of more than $6.80, which is higher than the anticipated $6.73.

Centene's CEO, Sarah M. London, emphasized the company's commitment to quality care for its 28 million members, noting improvements in core operations and investments in customer and provider experiences. "This morning, we are reiterating our 2024 adjusted diluted EPS guidance of greater than $6.80. Additionally, we issued 2025 adjusted diluted EPS guidance of greater than $7.25, representing more than 6% year-over-year growth," London stated.

The company's financial guidance for the 2025 fiscal year includes total revenues ranging from $166.5 billion to $169.5 billion and premium and service revenues between $154.0 billion and $156.0 billion. The guidance also forecasts a GAAP diluted EPS of more than $6.19 and an adjusted diluted EPS of over $7.25. Centene anticipates a health benefits ratio (HBR) between 88.4% and 89.0%, and both selling, general and administrative (SG&A) and adjusted SG&A expense ratios are expected to be between 8.1% and 8.7%. The effective tax rate is projected to be between 21.5% and 22.5%, with an adjusted effective tax rate of 22.0% to 23.0%. Diluted shares outstanding are estimated to be between 491.0 million and 494.0 million.

For 2024, Centene reaffirms its guidance for premium and service revenues in the range of $143.5 billion to $144.5 billion, with a HBR of 88.3% to 88.5% and an adjusted diluted EPS of greater than $6.80. The company plans to report its full-year 2024 earnings on February 4, 2025, at 6:00 a.m. Eastern Time, followed by a conference call at 8:30 a.m. Eastern Time.

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Source: Investing.com