The 10-second takeaway
For the quarter ended March 31 (Q1), Centene beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share dropped.
Margins dropped across the board.
Centene notched revenue of $1.71 billion. The 12 analysts polled by S&P Capital IQ predicted revenue of $1.68 billion on the same basis. GAAP reported sales were 40% higher than the prior-year quarter's $1.22 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.45. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.48 per share. GAAP EPS of $0.45 for Q1 were 2.2% lower than the prior-year quarter's $0.46 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 15.7%, 590 basis points worse than the prior-year quarter. Operating margin was 2.0%, 150 basis points worse than the prior-year quarter. Net margin was 1.4%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.89 billion. On the bottom line, the average EPS estimate is $0.67.
Next year's average estimate for revenue is $7.59 billion. The average EPS estimate is $2.73.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Centene is outperform, with an average price target of $49.40.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.