Centene Q3 Earnings Beat Estimates on Increasing Premium

Centene Corporation CNC reported third-quarter 2025 adjusted earnings per share of 50 cents, which beat the Zacks Consensus Estimate of a loss of 21 cents. However, the bottom line fell from the year-ago profit of $1.62 per share.Revenues advanced 18.2% year over year to $49.7 billion. The top line beat the consensus mark by 4.4%.The quarterly results benefited from solid premium growth, fueled by expanding membership in the Prescription Drug Plan (PDP) and Commercial Marketplace businesses, along with overall growth in the Marketplace business. However, the upside was partly offset by rising medical costs, declining service revenues and year-over-year membership declines in Medicaid and Medicare businesses.Centene Corporation Price, Consensus and EPS Surprise Centene Corporation price-consensus-eps-surprise-chart | Centene Corporation QuoteQuarterly Operational Update of CNCRevenues from Medicaid grew 9% year over year to $23.2 billion, while Medicare revenues of $9.4 billion surged 66% year over year in the quarter under review. Meanwhile, commercial revenues improved 26% year over year to $11 billion.Centene's premium totaled $44.1 billion, which advanced 22.2% year over year on the back of higher premiums and an expanding membership base in the PDP business, coupled with overall growth in the Marketplace business and Medicaid rate hikes. The metric surpassed the Zacks Consensus Estimate by 3.1% and our estimate by 2.7%.Service revenues of $772 million decreased 1.5% year over year in the third quarter. However, the metric beat our estimate of $723 million. Investment and other income grew 4.2% year over year to $450 million, which beat the Zacks Consensus Estimate of $381.4 million.Total membership (excluding TRICARE) was 28 million as of Sept. 30, 2025, which grew 8% year over year, driven by growing commercial members, partially offset by membership declines in the Medicaid and Medicare businesses. The metric beat the consensus mark by 0.5%.Centene’s health benefits ratio of 92.7% deteriorated 350 basis points year over year in the quarter under review, and slightly missed the consensus mark of 93%. Operating expenses totaled $56.6 billion, which escalated 37% year over year and came higher than our estimate of $47.6 billion. The year-over-year increase was due to higher medical costs, impairment expenses, and selling, general and administrative expenses. Medical costs alone jumped 27% year over year.Adjusted net earnings were recorded at $245 million compared with year-ago figure of $849 million.CNC’s Financial Update (As of Sept. 30, 2025)Centene exited the third quarter with cash and cash equivalents of $17.1 billion, which advanced from the $14.1 billion figure at 2024-end. Total assets of $82.1 billion decreased from the 2024-end level of $82.4 billion.Long-term debt amounted to $17.5 billion, which dipped from the $18.4 billion figure as of Dec. 31, 2024. The current portion of long-term debt totaled $38 million.Total stockholders’ equity of $21 billion fell from the 2024-end figure of $26.5 billion.Centene generated $4.7 billion of net cash from operations in the first nine months of 2025, up from $741 million a year ago.Centene’s Share Repurchase UpdateCentene bought back common shares worth around $473 million in the first nine months of 2025.CNC’s Zacks RankCNC currently carries a Zacks Rank #5 (Strong Sell).Upcoming Earnings ReleasesHere are three companies from the Medical space that are likely to report their respective quarterly earnings soon.ANI Pharmaceuticals, Inc. ANIP carries a Zacks Rank of 2 (Buy) at present. The Zacks Consensus Estimate for ANIP’s bottom line for the to-be-reported quarter is pegged at $1.74 per share, indicating 29.9% year-over-year growth. ANI Pharmaceuticals’ earnings beat estimates in each of the past four quarters, with an average surprise of 22.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Option Care Health, Inc. OPCH has a Zacks Rank of 3 (Hold) at present. The Zacks Consensus Estimate for OPCH’s bottom line for the to-be-reported quarter is pegged at 43 cents per share, indicating 4.9% year-over-year growth. Option Care Health’s earnings beat estimates in each of the past four quarters, with an average surprise of 13%.The Cigna Group CI currently has a Zacks Rank of 3. The Zacks Consensus Estimate for CI’s bottom line for the to-be-reported quarter of $7.70 per share indicates 2.5% year-over-year growth. It remained stable over the past week. Cigna Group’s earnings beat estimates in three of the last four quarters and missed once.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cigna Group (CI): Free Stock Analysis Report Centene Corporation (CNC): Free Stock Analysis Report ANI Pharmaceuticals, Inc. (ANIP): Free Stock Analysis Report Option Care Health, Inc. (OPCH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks