Centene Corp (NYSE:CNC) shares fell almost 40% after the healthcare company withdrew its full-year 2025 financial guidance due to weak growth and higher-than-expected costs in its Affordable Care Act (ACA) marketplace business. Based on a preliminary analysis from the independent actuarial firm Wakely, Centene anticipates a $1.8 billion shortfall in risk adjustment revenue for 2025, which translates to a $2.75 per share reduction in adjusted earnings.
CNC pulls its 2025 forecast after a $1.8B risk adjustment shortfall. Also, weak Marketplace growth shakes investor confidence.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
The P/B ratio helps to identify low-priced stocks with high growth prospects. CNC, CVS, ODP, STNE and PSFE are some such stocks.
Centene's stock suffers a historic plunge as underestimation of healthcare costs leads the insurer to withdraw its full-year earnings outlook.
Centene Corporation (NYSE:CNC) experienced a challenging Tuesday evening, witnessing a 25% drop in shares during after-hours trading on July 1st. The significant decline in the healthcare giant's stock wasn't merely another example of market fluctuations; it was directly sparked by the company's complete withdrawal of its 2025 guidance, creating turmoil among investors.
It's been a tough year for health insurance stocks, with UnitedHealth also tumbling after the company pulled its guidance.
News government-subsidized health insurance provider Centene is withdrawing its 2025 financial guidance comes as the Republican-controlled Congress is poised to slash hundreds of billions of dollars in funding to Medicaid and Obamacare markets largely administered by health insurers.
Health insurer Centene, one of the nation's biggest providers of individual coverage under the Affordable Care Act known as Obamacare, on Tuesday withdrew its 2025 guidance, saying market growth in more than 20 states is lower than expected.
U.S. health insurer Centene said on Tuesday it has withdrawn its 2025 earnings forecast, sending its shares down nearly 22% in extended trading.
ST. LOUIS , July 1, 2025 /PRNewswire/ -- Centene Corporation (NYSE: CNC) (Centene, the Company) is withdrawing its previous 2025 GAAP and adjusted diluted earnings per share (EPS) guidance, including the underlying guidance elements. Marketplace 2025 Risk Adjustment Update The Company recently received and analyzed its first view of 2025 industry Health Insurance Marketplace (Marketplace) data from Wakely, an independent actuarial firm, covering 22 of Centene's 29 Marketplace states, and representing approximately 72% of the Company's Marketplace membership.
Centene (CNC) has become technically an oversold stock now, which implies exhaustion of the heavy selling pressure on it. This, combined with strong agreement among Wall Street analysts in revising earnings estimates higher, indicates a potential trend reversal for the stock in the near term.