Core Insights - Health Net, a managed care health plan under Centene Corporation, partnered with the Pro Football Hall of Fame to host impactful events in Sacramento, "Salute to Service" and "Strong Youth, Strong Communities," aimed at recognizing local heroes and empowering the next generation [1][10] Group 1: Salute to Service Event - The "Salute to Service" event honored healthcare heroes at WellSpace Health Alhambra Community Health Center, recognizing the essential work of medical professionals serving vulnerable communities in Sacramento [2][4] - Health Net emphasized the importance of community support and honoring those who dedicate their lives to helping others, aiming to inspire youth leadership with compassion and resilience [3][10] Group 2: Strong Youth, Strong Communities Event - The "Strong Youth, Strong Communities" assembly at River City High School engaged over 2,000 students with motivational talks from professional football legends and community leaders, providing life skills and leadership lessons [7][9] - The event focused on educating youth about mental health and empowering them to improve their lives and communities, highlighting the importance of resilience and support systems [8][9] Group 3: Organizational Commitment - Both events reflect Health Net's and the Pro Football Hall of Fame's commitment to honoring those who serve and inspiring youth in the Sacramento metropolitan area [10] - Health Net and Centene Corporation maintain a long-standing commitment to the military community, addressing a wide range of healthcare needs for veterans and active military families [10][12]

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Core Viewpoint - Centene expects a rebound in 2026 with adjusted EPS greater than $3, implying over 40% year-over-year growth, driven by Medicaid margin stability, significant margin recovery in Marketplace, and continued improvement toward Medicare Advantage break-even by 2027 [1][4][7] Medicaid - Centene reported a fourth-quarter health benefits ratio (HBR) of 93.0%, showing a 40 basis points sequential improvement and 190 basis points improvement from Q2 levels [8] - The company anticipates a mid-4% net rate impact and mid-4% net trend for 2026, while expecting ongoing Medicaid membership attrition, closing 2025 at 12.5 million members [11][12] - Management is focused on restoring sustainable profitability in Medicaid through operational levers such as network optimization and clinical programs [9] Marketplace - The Marketplace segment is expected to face a smaller membership base due to the expiration of Enhanced Advance Premium Tax Credits (EAPTC), with Ambetter membership projected at approximately 3.5 million by Q1 2026, down from 5.5 million in December [5][15] - Centene anticipates Marketplace pre-tax margins to recover to around 4% in 2026, compared to a loss of approximately 1% in 2025 [17] - The company has accounted for estimated 2026 No Surprises Act costs in its guidance and is advocating for reform [14] Medicare - Centene's Medicare segment is expected to grow premium revenue by about $7.5 billion, with membership projected at approximately 8.7 million coming out of open enrollment [20] - The company aims for break-even results in Medicare Advantage by 2027, with dual-eligible members making up roughly 40% of its Medicare Advantage business [19] - The direct subsidy for Part D increased from $143 to $200, which is expected to raise the HBR without requiring higher SG&A [21] Financial Guidance - For 2026, Centene guided premium and service revenue between $170 billion and $174 billion, with a consolidated HBR of 90.9% to 91.7% [23][24] - The company expects the majority of 2026 adjusted EPS to occur in Q1, with a step-down through the year and a loss anticipated in Q4 [26] - Centene ended 2025 with approximately $400 million in cash for corporate use and reduced debt by $189 million in Q4, reporting a debt-to-cap ratio of 46.5% [25]

Core Insights - Centene Corporation reported a quarterly loss of $1.19 per share, which was better than the estimated loss of $1.22 per share [1][3] - The company's revenue for the quarter ending December 2025 was $49.73 billion, exceeding the estimated $48.41 billion and representing a 21.9% increase from the previous year's $40.81 billion [2][6] - For the full year 2025, Centene reported a GAAP diluted loss per share of $13.53, while the adjusted diluted earnings per share were $2.08, with projections for adjusted diluted earnings per share to exceed $3.00 in 2026 [4][6] Financial Performance - Centene's EPS of -$1.19 was a positive surprise compared to the Zacks Consensus Estimate of a $1.25 loss, marking a 4.76% positive deviation [3] - The company has consistently exceeded consensus revenue estimates over the past four quarters, demonstrating strong performance [2] - The Health Benefits Ratio (HBR) for the fourth quarter of 2025 was 94.3%, indicating improvements in Medicaid HBR [4][6] Financial Metrics - Centene's price-to-earnings (P/E) ratio is -3.55, and the price-to-sales ratio is 0.10, reflecting its current negative earnings situation [5] - The debt-to-equity ratio stands at 0.84, suggesting a moderate level of debt compared to equity [5] - A current ratio of 1.08 indicates that Centene maintains a reasonable level of short-term financial health [5]

Core Viewpoint - Centene Corporation reported a fourth-quarter adjusted loss despite revenue exceeding Wall Street expectations, primarily due to high costs in the Commercial segment, leading to a more than 6% drop in shares following the announcement [1]. Financial Performance - The company recorded an adjusted loss of $1.19 per share for the quarter, which was slightly better than analyst expectations of a $1.22 loss [2]. - Revenue increased by 23% year over year to $49.73 billion, surpassing the consensus estimate of $48.39 billion [2]. - The consolidated health benefits ratio (HBR) rose sharply to 94.3%, compared to 89.6% in the same quarter last year [2]. Segment Analysis - The Commercial segment had an HBR of 95.4%, which was approximately 100 basis points above company expectations due to net out-of-period items [3]. - The Medicaid segment showed improvement with an HBR of 93.0%, reflecting a 40-basis-point sequential improvement from the third quarter [3]. Future Guidance - For the full year 2025, Centene reported adjusted earnings of $2.08 per share on revenue of $194.78 billion, indicating a 20% increase compared to 2024 [4]. - The company provided guidance for 2026, projecting adjusted earnings per share of more than $3.00, demonstrating confidence in its recovery efforts [4].

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Core Insights - Centene Corporation (CNC) reported a fourth-quarter 2025 adjusted loss per share of $1.19, which was better than the Zacks Consensus Estimate of a loss of $1.25 per share, compared to adjusted earnings of 80 cents per share in the same quarter last year [1][9] - Total revenues reached $49.7 billion, reflecting a year-over-year increase of 21.9% and surpassing the consensus estimate by 3.1% [1][4] Revenue Breakdown - Medicaid revenues increased by 11% year over year to $23 billion, while Medicare revenues surged 75% year over year to $9.6 billion. Commercial revenues rose 24% year over year to $10.8 billion [3] - Premium revenues grew by 23.8% year over year to $44 billion, driven by higher premiums and membership in the PDP and Marketplace businesses, as well as Medicaid rate hikes, exceeding the Zacks Consensus Estimate of $43.5 billion [4] Membership and Costs - Total membership declined by 3.4% year over year to 27.6 million, missing the consensus mark of 27.9 million, primarily due to decreases in Medicaid and Medicare memberships [5] - The health benefits ratio worsened by 470 basis points year over year to 94.3%, with operating expenses rising 26.7% year over year to $51.5 billion, largely due to increased medical costs, which escalated by 30.4% year over year [6][9] Financial Position - As of December 31, 2025, Centene had cash and cash equivalents of $17.9 billion, a 27.2% increase from the end of 2024. Total assets decreased by 6.9% to $76.7 billion, while long-term debt fell by 5.8% to $17.4 billion [7] - The company generated $5.1 billion in net cash from operations in 2025, a significant increase from the previous year [8] Full-Year Performance - For the full year 2025, total revenues amounted to $194.8 billion, a 19.4% increase from 2024, while adjusted EPS dropped 71% year over year to $2.08. Premium and service revenues reached $174.6 billion, up 20% year over year [11] 2026 Guidance - Management projects premium and service revenues for 2026 to be between $170 billion and $174 billion, indicating a potential decline of 1.5% from 2025. Total revenues are expected to range from $186.5 billion to $190.5 billion, suggesting a 3.2% decrease from 2025 [12] - Adjusted EPS is anticipated to exceed $3.00, representing a 44.2% increase from 2025, while GAAP EPS is expected to remain above $1.98 [12]

Core Viewpoint - Centene Corporation's stock declined due to a mixed outlook for fiscal 2026, despite reporting better-than-expected earnings for Q4 2025 [1]. Earnings Snapshot - The company reported a fourth-quarter 2025 adjusted loss of $1.19 per share, which was better than the consensus loss of $1.22 per share, contrasting with an income of $0.80 per share a year ago [2]. - Centene's sales increased from $40.81 billion to $49.73 billion, surpassing the consensus estimate of $48.39 billion [2]. - The health benefits ratio (HBR) rose to 94.3%, up from 89.6% a year ago [2]. Membership and Costs - Total membership across Centene's portfolio decreased to 27.63 million from 28.60 million a year ago, mainly due to a drop in Medicaid membership from 13.00 million to 12.52 million [4]. - Commercial membership increased from 4.81 million to 5.99 million [4]. - The increase in HBR was primarily driven by higher Marketplace morbidity impacting medical costs and program changes in the PDP business due to the Inflation Reduction Act [3]. Management Commentary and Guidance - Centene anticipates adjusted earnings for fiscal 2026 to exceed $3 per share, compared to the consensus of $2.94 [5]. - The CEO stated that the company is positioned for significant margin improvement and renewed adjusted diluted EPS growth, aiming for adjusted diluted EPS greater than $3.00 in 2026 [6]. - The company expects 2026 sales to be between $186.5 billion and $190.5 billion, below the consensus of $193.43 billion, with premium revenues projected between $170 billion and $174 billion [7].

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