Centene (CNC) To Report Q2 Earnings: What's In The Cards?
Zacks Investment Research | Jul 23, 2017 09:14PM ET
Centene Corporation (NYSE:CNC) will release second-quarter 2017 results on Jul 25, before the market opens.
Last quarter, the company delivered a positive earnings surprise of 5.66%. Let’s see how things are shaping up for this announcement.
Factors to be Considered this Quarter
The buyout of Health Net is expected to have boosted the company’s growth potential, significantly increasing revenues.
The company’s Missouri Medicaid contract, active since May 1, 2017, is likely to have increased the membership, thereby boosting revenue growth in the second quarter.
The Medicare Advantage plans, operational in four new states since Jan 2017, is expected to have continued contributing to the company’s revenue growth.
The company’s Government-sponsored Health Insurance business is anticipated to have performed well, adding to the top line.
The company’s share repurchase programs intended to enhance shareholders’ value might have impacted margins positively by reducing the outstanding share count.
Nevertheless, Health Net’s high selling general and administrative expenses are expected to have increased its overall costs, thereby limiting bottom-line growth.
Increasing costs related to interest payment, reserves for settlements, legal judgments and lawsuits, impairments of long-lived assets might have affected earnings.
Earnings Whispers
Our proven model does not conclusively show that Centene is likely to beat on earnings this quarter. This is because a stock needs to have both a positive .
Pfizer, Inc. (NYSE:PFE) has an Earnings ESP of +1.54% and a Zacks Rank #3. The company is set to report second-quarter earnings on Aug 1.
Humana, Inc. (NYSE:HUM) has an Earnings ESP of +1.3% and a Zacks Rank #3 The company is set to report second-quarter earnings on Aug 2.
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