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Centene Q3 revenue tops estimates on Medicare growth

By Reuters News


Overview

  • U.S. managed care firm's Q3 revenue rose, beating analyst expectations

  • Adjusted EPS for Q3 beat consensus

  • Company raised 2026 adjusted EPS guidance and improved HBR outlook


Outlook

  • Centene raises 2026 GAAP diluted EPS guidance to greater than $3.46

  • Centene lifts 2026 adjusted diluted EPS guidance to greater than $5.20

  • Company lowers 2026 HBR guidance range to 90.4%-91.1%


Result Drivers

  • MEDICARE GROWTH - Co said Q3 revenue increase was driven by premium yield and membership growth in Medicare Prescription Drug Plan (PDP) business

  • MARKETPLACE PRICING - Co said improved pricing and risk transfer in Marketplace segment lowered health benefits ratio

  • COST MANAGEMENT - Co said decrease in adjusted SG&A expense ratio was driven by strong cost management and reduced Marketplace membership


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$50.65 bln

$47.11 bln (15 Analysts)

Q3 Adjusted EPS

Beat

$0.58

$0.10 (19 Analysts)

Q3 Loss Per Share

$0.14


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 13 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the managed healthcare peer group is "buy"

  • Wall Street's median 12-month price target for Centene Corp is $71.00, about 4.4% above its October 26 closing price of $68.03

  • The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 16 three months ago


Reuters Recommended Reads

  • Oct 26 - Hartford Insurance Q3 core EPS beats estimates; dividend raised

  • Oct 26 - Cincinnati Financial Q3 adj EPS beats estimates

  • Oct 26 - Panama's Bladex Q3 net profit rises on higher business volumes


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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