CENTENE CORPORATION ANNOUNCES 2025 GUIDANCE
Centene (NYSE: CNC) has announced its 2025 financial guidance, projecting adjusted diluted EPS of greater than $7.25, representing over 6% year-over-year growth. The company also reaffirmed its 2024 adjusted diluted EPS guidance of greater than $6.80.
Key 2025 projections include: total revenues of $166.5-169.5 billion, premium and service revenues of $154.0-156.0 billion, health benefits ratio of 88.4-89.0%, and SG&A expense ratio of 8.1-8.7%. The company serves more than 28 million members and maintains its 2024 premium and service revenues guidance of $143.5-144.5 billion.
Centene (NYSE: CNC) ha annunciato le sue previsioni finanziarie per il 2025, prevedendo un EPS diluito rettificato superiore a $7,25, che rappresenta una crescita di oltre il 6% rispetto all'anno precedente. L'azienda ha inoltre confermato le sue previsioni di EPS diluito rettificato per il 2024, superiore a $6,80.
Le proiezioni chiave per il 2025 includono: ricavi totali tra $166,5 e $169,5 miliardi, ricavi da premi e servizi tra $154,0 e $156,0 miliardi, un rapporto di benefici sanitari dell'88,4-89,0% e un rapporto delle spese SG&A dell'8,1-8,7%. L'azienda serve più di 28 milioni di membri e mantiene le sue previsioni per il 2024 sui ricavi da premi e servizi tra $143,5 e $144,5 miliardi.
Centene (NYSE: CNC) ha anunciado su guía financiera para 2025, proyectando un EPS diluido ajustado superior a $7.25, lo que representa un crecimiento de más del 6% respecto al año anterior. La compañía también reafirmó su guía de EPS diluido ajustado para 2024 de más de $6.80.
Las proyecciones clave para 2025 incluyen: ingresos totales de $166.5-169.5 mil millones, ingresos por primas y servicios de $154.0-156.0 mil millones, una relación de beneficios de salud de 88.4-89.0%, y una relación de gastos SG&A de 8.1-8.7%. La compañía atiende a más de 28 millones de miembros y mantiene su guía de ingresos por primas y servicios de 2024 de $143.5-144.5 mil millones.
센틴(Centene) (NYSE: CNC)은 2025년 재무 가이던스를 발표하며 조정된 희석 EPS가 $7.25를 초과할 것이라고 예상했습니다. 이는 전년 대비 6% 이상의 성장률을 나타냅니다. 회사는 또한 2024년 조정된 희석 EPS 가이던스도 $6.80를 초과할 것이라고 확인했습니다.
2025년 주요 전망에는: 총 수익이 $166.5-169.5십억, 프리미엄 및 서비스 수익이 $154.0-156.0십억, 건강 혜택 비율이 88.4-89.0%, SG&A 비용 비율이 8.1-8.7% 포함됩니다. 회사는 2800만 명 이상의 회원을 제공하며 2024년 프리미엄 및 서비스 수익 가이던스를 $143.5-144.5십억으로 유지합니다.
Centene (NYSE: CNC) a annoncé ses prévisions financières pour 2025, projetant un EPS dilué ajusté supérieur à 7,25 $, représentant une croissance de plus de 6 % par rapport à l'année précédente. La société a également réaffirmé ses prévisions d'EPS dilué ajusté pour 2024, supérieur à 6,80 $.
Les estimations clés pour 2025 incluent : des revenus totaux de 166,5 à 169,5 milliards de dollars, des revenus de primes et de services de 154,0 à 156,0 milliards de dollars, un ratio de prestations de santé de 88,4 à 89,0 % et un ratio des dépenses SG&A de 8,1 à 8,7 %. L'entreprise dessert plus de 28 millions de membres et maintient ses prévisions de revenus de primes et de services pour 2024 de 143,5 à 144,5 milliards de dollars.
Centene (NYSE: CNC) hat seine finanzielle Prognose für 2025 bekannt gegeben und erwartet einen bereinigten verwässerten EPS von über $7,25, was einem Wachstum von über 6% im Jahresvergleich entspricht. Das Unternehmen hat auch seine Prognose für das bereinigte verwässerte EPS 2024 von mehr als $6,80 bestätigt.
Wichtige Prognosen für 2025 umfassen: Gesamterlöse von $166,5-169,5 Milliarden, Einnahmen aus Prämien und Dienstleistungen von $154,0-156,0 Milliarden, ein Gesundheitsleistungsverhältnis von 88,4-89,0% und ein Verhältnis der SG&A-Ausgaben von 8,1-8,7%. Das Unternehmen bedient mehr als 28 Millionen Mitglieder und behält seine Prognose für die Einnahmen aus Prämien und Dienstleistungen 2024 von $143,5-144,5 Milliarden bei.
- Projected 6% year-over-year EPS growth from 2024 to 2025
- Expected revenue growth to $166.5-169.5 billion in 2025
- Strong membership base of over 28 million members
- Projected increase in Health Benefits Ratio to 88.4-89.0% in 2025 from 88.3-88.5% in 2024
Insights
The 2025 guidance reveals strong financial momentum with
The steady improvement in adjusted EPS, coupled with controlled expense ratios, demonstrates effective cost management and margin expansion. The company's focus on operational improvements over the past three years is translating into sustainable financial performance, particularly evident in the projected revenue growth trajectory.
The guidance underscores Centene's strong position in managed care, serving over 28 million members with a focus on complex and underserved populations. The projected HBR range suggests stable medical cost trends and effective care management. The company's ability to maintain consistent operational metrics while growing its membership base indicates successful scaling of its healthcare delivery model.
The emphasis on quality outcomes and customer experience improvements, combined with the financial projections, points to a well-balanced approach between member service enhancement and fiscal responsibility. This strategy is particularly important in the current healthcare environment where both cost management and service quality are important differentiators.
-- 2025 adjusted diluted EPS of greater than
-- Reaffirms 2024 adjusted diluted EPS guidance of greater than
"Centene is a mission driven organization, dedicated to delivering high quality outcomes for more than 28 million members, many of whom are among the nation's most medically complex and historically underserved populations. Over the last three years we improved our core operations and invested in the experience of our customers and providers, all while delivering on our financial commitments," said Chief Executive Officer of Centene, Sarah M.
For its 2025 fiscal year, the Company's guidance is as follows:
- Total revenues of
$166.5 billion $169.5 billion - Premium and service revenues of
$154.0 billion $156.0 billion - GAAP diluted earnings per share (EPS) of greater than
$6.19 - Adjusted diluted EPS of greater than
$7.25 - Health benefits ratio (HBR) of
88.4% to89.0% . - Selling, general and administrative (SG&A) expense ratio of
8.1% to8.7% . - Adjusted SG&A expense ratio of
8.1% to8.7% . - Effective tax rate of
21.5% to22.5% . - Adjusted effective tax rate of
22.0% to23.0% . - Diluted shares outstanding of 491.0 million to 494.0 million.
The Company reaffirms its 2024 premium and service revenues guidance in the previously announced range of
Investor Meeting
Centene Corporation will host a virtual investor day today starting at 8:30 a.m. Eastern Time. The event can be accessed via a live webcast on the Company's website at www.centene.com, under the Investors section, or directly via the following link at: https://event.webcasts.com/starthere.jsp?ei=1700085&tp_key=eac9720ef1. A webcast replay will be available for on-demand listening shortly following the completion of the call for the next 12 months at the aforementioned URL.
Non-GAAP Financial Presentation
The Company is providing certain non-GAAP financial measures in this release as the Company believes that these figures are helpful in allowing investors to more accurately assess the ongoing nature of the Company's operations and measure the Company's performance more consistently across periods. The Company uses the presented non-GAAP financial measures internally in evaluating the Company's performance and for planning purposes, by allowing management to focus on period-to-period changes in the Company's core business operations, and in determining employee incentive compensation. Therefore, the Company believes that this information is meaningful in addition to the information contained in the GAAP presentation of financial information. The Company strongly encourages investors to review its consolidated financial statements and publicly filed reports in their entirety and cautions investors that the non-GAAP financial measures used by the Company may differ from similar measures used by other companies, even when similar terms are used to identify such measures. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.
The Company believes the presentation of non-GAAP financial measures that excludes amortization of acquired intangible assets, acquisition and divestiture related expenses, as well as other items, allows investors to develop a more meaningful understanding of the Company's core performance over time. The Company references 2025 adjusted SG&A expense ratio guidance, which excludes estimated acquisition and divestiture related expenses of approximately
The table below provides a reconciliation of the Company's 2024 and 2025 adjusted diluted EPS guidance:
Annual Guidance December 31, 2024 | Annual Guidance December 31, 2025 | ||
GAAP diluted EPS | > | > | |
Amortization of acquired intangible assets | |||
Acquisition and divestiture related expenses | ~$— | ||
Other adjustments (1) | ~$— | ||
Income tax effects of adjustments (2) | |||
Adjusted diluted EPS | > | > |
(1) | Other adjustments include the following pre-tax items: | |
(a) | for the year ended December 31, 2024, an estimated: | |
(b) | none for the year ended December 31, 2025. | |
(2) | The income tax effects of adjustments are based on the effective income tax rates applicable to each adjustment. | |
About Centene Corporation
Centene Corporation, a Fortune 500 company, is a leading healthcare enterprise that is committed to helping people live healthier lives. The Company takes a local approach – with local brands and local teams – to provide fully integrated, high-quality, and cost-effective services to government-sponsored and commercial healthcare programs, focusing on under-insured and uninsured individuals. Centene offers affordable and high-quality products to more than 1 in 15 individuals across the nation, including Medicaid and Medicare members (including Medicare Prescription Drug Plans) as well as individuals and families served by the Health Insurance Marketplace and the TRICARE program.
Centene uses its investor relations website to publish important information about the Company, including information that may be deemed material to investors. Financial and other information about Centene is routinely posted and is accessible on Centene's investor relations website, http://investors.centene.com/.
Forward-Looking Statements
All statements, other than statements of current or historical fact, contained in this press release are forward-looking statements. Without limiting the foregoing, forward-looking statements often use words such as "guidance," "believe," "anticipate," "plan," "expect," "estimate," "intend," "seek," "target," "goal," "may," "will," "would," "could," "should," "can," "continue," and other similar words or expressions (and the negative thereof). Centene (the Company, our, or we) intends such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and we are including this statement for purposes of complying with these safe-harbor provisions. In particular, these statements include, without limitation, statements about our expected future operating or financial performance, market opportunity, competition, renewal and modification of the enhanced advance premium tax credits associated with the Marketplace product, expected contract start dates and terms, expected activities in connection with completed and future acquisitions and dispositions, our investments and the adequacy of our available cash resources. These forward-looking statements reflect our current views with respect to future events and are based on numerous assumptions and assessments made by us in light of our experience and perception of historical trends, current conditions, business strategies, operating environments, future developments, and other factors we believe appropriate. By their nature, forward-looking statements involve known and unknown risks and uncertainties and are subject to change because they relate to events and depend on circumstances that will occur in the future, including economic, regulatory, competitive, and other factors that may cause our or our industry's actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, and assumptions. All forward-looking statements included in this press release are based on information available to us on the date hereof. Except as may be otherwise required by law, we undertake no obligation to update or revise the forward-looking statements included in this press release, whether as a result of new information, future events, or otherwise, after the date hereof. You should not place undue reliance on any forward-looking statements, as actual results may differ materially from projections, estimates, or other forward-looking statements due to a variety of important factors, variables, and events including, but not limited to: our ability to design and price products that are competitive and/or actuarially sound including but not limited to any impacts resulting from Medicaid redeterminations; our ability to maintain or achieve improvement in the Centers for Medicare and Medicaid Services (CMS) Star ratings and maintain or achieve improvement in other quality scores in each case that can impact revenue and future growth; our ability to accurately predict and effectively manage health benefits and other operating expenses and reserves, including fluctuations in medical utilization rates; competition, including for providers, broker distribution networks, contract reprocurements and organic growth; our ability to adequately anticipate demand and provide for operational resources to maintain service level requirements; our ability to manage our information systems effectively; disruption, unexpected costs, or similar risks from business transactions, including acquisitions, divestitures, and changes in our relationships with third parties; impairments to real estate, investments, goodwill and intangible assets; changes in senior management, loss of one or more key personnel or an inability to attract, hire, integrate and retain skilled personnel; membership and revenue declines or unexpected trends; rate cuts or other payment reductions or delays by governmental payors and other risks and uncertainties affecting our government businesses; changes in healthcare practices, new technologies, and advances in medicine; our ability to effectively and ethically use artificial intelligence and machine learning in compliance with applicable laws; increased healthcare costs; inflation and interest rates; the effect of social, economic, and political conditions and geopolitical events, including as a result of changes in
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SOURCE Centene Corporation
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