Can Centene Beat Q1 Earnings Estimates on Growing Premiums?

Core Viewpoint - Centene Corporation (CNC) is expected to report its first-quarter 2025 results on April 25, with earnings estimated at $2.36 per share and revenues at$43.47 billion, indicating year-over-year growth in both metrics [1] Financial Estimates - The Zacks Consensus Estimate for Centene's revenues for the current year is $172.83 billion, reflecting a 6$7.13, indicating a slight decline of 0.6% year-over-year [3] - The earnings estimate for Q1 has remained stable over the past week, with a year-over-year increase of 4.4% projected [1][2] - The consensus estimate for quarterly revenues suggests a year-over-year growth of 7.6% [1] Earnings Performance - Centene has beaten the consensus estimate for earnings in three of the last four quarters, with an average surprise of 21.8% [3] - The company has an Earnings ESP of +8.17% and a Zacks Rank of 3 (Hold), indicating a favorable outlook for an earnings beat [4] Revenue Drivers - Revenue growth in Q1 is expected to be supported by higher premiums, with the Zacks Consensus Estimate for premiums at $39.4 billion, suggesting a 10.8$8.5 billion, indicating a significant year-over-year increase of 43.9% [6] Cost Considerations - The total Health Benefit Ratio (HBR) for Q1 is estimated at 87.85%, up from 87.10% a year ago, which may partially offset revenue growth [7] - Total operating expenses are expected to grow by 7.1% year-over-year due to higher medical costs [8]