Centene Corporation (NYSE: CNC), a leading healthcare enterprise focused on improving the lives of its members, has provided its financial guidance for 2025 during its investor day event. The company reaffirmed its commitment to delivering high-quality care to more than 28 million members, including many from underserved and complex medical backgrounds. Over the past three years, Centene has improved its core operations and enhanced customer and provider experiences while fulfilling its financial objectives.
CEO Sarah M. London highlighted that Centene is on track to meet its 2024 adjusted diluted earnings per share (EPS) guidance of greater than $6.80. For 2025, Centene has issued a new guidance of greater than $7.25 in adjusted diluted EPS, which represents a year-over-year growth of more than 6%.
2025 Financial Guidance:
For the fiscal year 2025, Centene has outlined the following expectations:
- Total revenues between $166.5 billion and $169.5 billion.
- Premium and service revenues between $154.0 billion and $156.0 billion.
- GAAP diluted EPS of greater than $6.19.
- Adjusted diluted EPS of greater than $7.25.
- Health benefits ratio (HBR) between 88.4% and 89.0%.
- Selling, general and administrative (SG&A) expense ratio between 8.1% and 8.7%.
- Adjusted SG&A expense ratio between 8.1% and 8.7%.
- Effective tax rate between 21.5% and 22.5%.
- Adjusted effective tax rate between 22.0% and 23.0%.
- Diluted shares outstanding ranging from 491.0 million to 494.0 million.
Additionally, Centene reaffirmed its 2024 guidance for premium and service revenues in the range of $143.5 billion to $144.5 billion, with an HBR guidance of 88.3% to 88.5%, and an adjusted diluted EPS greater than $6.80. Full-year results for 2024 are expected to be reported on February 4, 2025.
Investor Day Event:
Centene Corporation will host a virtual investor day event today at 8:30 a.m. Eastern Time. The event will be available for live viewing via webcast on the Centene website under the Investors section, or through this direct link: Investor Day Webcast. A replay of the webcast will be available on-demand for 12 months following the event.
Non-GAAP Financial Measures:
Centene has provided certain non-GAAP financial measures in its release. These figures are intended to help investors more accurately assess the company’s ongoing operations and evaluate performance consistently across periods. Non-GAAP measures exclude items such as amortization of acquired intangible assets and acquisition-related expenses, which Centene believes provides a clearer picture of its core performance over time. The company encourages investors to review its full financial statements and publicly filed reports for a comprehensive understanding.
Centene’s 2025 adjusted EPS guidance excludes approximately $1.40 for amortization of intangible assets and estimated acquisition-related expenses of $0.15. Income tax effects of adjustments are also taken into account when calculating adjusted EPS figures.
About Centene Corporation:
Centene Corporation is a Fortune 500 company that provides comprehensive healthcare services through government-sponsored and commercial programs. With a local approach to healthcare, Centene delivers high-quality, cost-effective services to underserved populations, including Medicaid, Medicare, and individuals covered by the Health Insurance Marketplace. The company’s mission is to help individuals live healthier lives, offering affordable solutions to over 1 in 15 individuals across the nation.
