NYSE$CNC

Centene Corp · Q4 2024 earnings

Q4 2024 earnings · · Before market open · Investor relations

Briefing

Centene reported its Q4 2024 earnings, demonstrating operational improvements amidst industry challenges.

Centene Corporation announced its Q4 and full year 2024 financial results. The company reported Q4 total revenues of $40.805 billion and GAAP diluted EPS of $0.56. Despite industry headwinds, Centene demonstrated operational improvements and delivered on its financial commitments.

  • 2024 adjusted diluted EPS of $7.17, up 7% from $6.68 in 2023.
  • Membership increases of 12% in Marketplace and 50% in Medicare PDP, compared to the fourth quarter of 2023.
  • Executed on capital deployment with $3.0 billion of share repurchases in 2024.
  • Increased 2025 premium and service revenues guidance by $4.0 billion driven by Medicaid revenue and better than expected membership performance during the annual enrollment period in Medicare Advantage and PDP.

Headline financials

Total Revenue

$40.8B

Previous: $39.5B+3.4%
EPS (adj)

$0.80

Previous: $0.45+77.8%
SG&A expense ratio

8.9%

Previous: 9.9%-10.1%
Adjusted SG&A ratio

8.9%

Previous: 9.7%-8.2%
Capital Expenditures

-$154M

Previous: -$223M+30.9%
Net Income

$280M

Previous: $39M+617.9%
Operating Income

$175M

Previous: -$194M+190.2%

Revenue & EPS history

Centene · Revenue · Quarterly

$40.8B

Q4 2024+3.4%vs Q4 2023
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Centene · $35B total across 4 segments · Q3 2023

  • Medicaid
    $21.6B-7.2%
  • Commercial
    $6.45B+50.3%
  • Medicare
    $5.43B-3.7%
  • Other
    $1.47B-44.5%

Forward guidance

The Company is increasing its 2025 premium and service revenues guidance range by $4.0 billion to a range of $158.0 billion to $160.0 billion. The Company reiterates its 2025 GAAP diluted EPS guidance floor of greater than $6.19 and its 2025 adjusted diluted EPS guidance floor of greater than $7.25.

Tailwinds

  • outperformance in our PDP annual enrollment resulting in an additional $1.5 billion premium revenue
  • outperformance in our Medicare Advantage annual enrollment resulting in $1.0 billion of additional premium revenue
  • $1.5 billion of additional Medicaid premium revenue due to a program change adding behavioral health coverage in one of our state contracts
  • 2025 GAAP diluted EPS guidance floor of greater than $6.19
  • 2025 adjusted diluted EPS guidance floor of greater than $7.25

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+0.4%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+1.9%

Avg return

30 days after

54%

37 / 68 earnings

Positive

+13.8%

Q1 2014

Best reaction

-10.4%

Q2 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.5%+22.6%+33.9%
Q4 2025-3.7%+1.3%+9.3%
Q3 2025+12.5%+3.9%+18.5%
Q1 2025-6.3%-2.8%-8.4%
Q4 2024-5.4%-9.1%-8.3%
Q3 2024+0.0%+0.3%-2.0%
Q2 2024+9.0%+14.1%+16.5%
Q1 2024-2.4%-4.5%-1.4%
Q4 2023+1.1%+4.4%+7.5%
Q3 2023-3.0%-4.8%+4.7%
Q2 2023-2.7%-3.7%-9.2%
Q1 2023-1.5%+1.9%-6.3%
Q4 2022+2.7%+2.4%-7.7%
Q3 2022+11.9%+13.2%+10.3%
Q2 2022+0.6%+1.1%+4.1%
Q1 2022-4.9%-5.1%-3.5%
Q4 2021+6.4%+3.1%+4.5%
Q3 2021+3.8%+4.8%+11.2%
Q2 2021-4.0%-5.6%-12.5%
Q1 2021-9.9%-6.5%+11.7%
Q4 2020+4.8%+1.6%+6.3%
Q3 2020-7.9%-11.0%-6.3%
Q2 2020-1.4%-3.0%-10.1%
Q1 2020-6.6%-8.3%-5.5%
Q4 2019+5.1%+0.4%-5.0%
Q3 2019+5.7%+5.4%+30.4%
Q2 2019+3.0%+2.4%-12.7%
Q1 2019+4.4%+9.5%+15.3%
Q4 2018-2.9%-3.2%-13.2%
Q3 2018-8.3%-9.9%-5.5%
Q2 2018-3.1%-3.0%+6.0%
Q1 2018-1.2%-0.4%+5.5%
Q4 2017+5.0%+2.3%+0.9%
Q3 2017-7.4%-3.7%-1.1%
Q2 2017-1.0%-1.8%+2.1%
Q1 2017+1.1%+3.3%+4.5%
Q4 2016+7.9%+9.1%+9.3%
Q3 2016+1.4%+0.1%-10.5%
Q2 2016-10.4%-6.3%-10.0%
Q1 2016+4.2%
Q4 2015+2.2%
Q3 2015+5.3%
Q2 2015+0.2%
Q1 2015-9.7%
Q4 2014+5.6%
Q3 2014+9.3%
Q2 2014+5.8%
Q1 2014+13.8%
Q4 2013+4.5%
Q3 2013-4.1%
Q2 2013+5.1%
Q1 2013+4.4%
Q4 2012+6.1%
Q3 2012+0.3%
Q2 2012+6.9%
Q1 2012-6.0%
Q4 2011-2.5%
Q3 2011+12.6%
Q2 2011+3.3%
Q1 2010+10.9%
Q1 2011+2.4%
Q4 2008-6.5%
Q4 2010-6.5%
Q3 2009-6.6%
Q2 2009-6.6%
Q3 2010-6.6%
Q4 2009-5.3%
Q2 2010-5.3%

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