What's In The Cards For Centene's (CNC) Earnings In Q4?
Zacks Investment Research | Jan 30, 2020 10:51PM ET
Centene Corporation (NYSE:CNC) will release fourth-quarter 2019 results on Feb 4, before the market opens.
For the to-be reported quarter, we expect to see an increase in revenues and membership. Let’s see how things are shaping up prior to this announcement.
For the to-be-reported quarter, the Zacks Consensus Estimate for its bottom line is pegged at 74 cents, indicating an increase of 7.2% from the year-ago reported figure.
The company’s fourth-quarter performance is likely to have been supported by its solid Government and Medicaid businesses. However, revenues are expected to have been partially offset by state-directed payments previously mentioned.
The consensus mark for the company’s top line suggests an upside of 11.6% from the year-earlier reported figure. Other factors, such as higher membership might also have provided a cushion to the revenue base.
The company’s upcoming quarterly results are likely to reflect growth in its Marketplace business. It is expected to have gained members on the back of several contract wins and new programs. The Zacks Consensus Estimate for the company's total membership count implies a rise of 6% from the prior-year reported number.
The quarter to be reported is likely to have witnessed higher premiums. The consensus estimate for the same hints at 13.3% growth from the year-ago reported figure.
The Zacks Consensus Estimate for fourth-quarter general and administrative expense ratio is pegged at 9.45%, suggesting a decline from 9.90% in the same period last year.
However, interest expenses of the company are anticipated to have escalated persistently.
What the Quantitative Model States
Our proven model does not conclusively predict an earnings beat for Centene this reporting cycle. The right combination of a positive Zacks Investment Research
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