Centene Corporation Reports Second Quarter FY2023 Earnings, Ending June 30th 2023
July 30, 2023
🌥️Earnings Overview
CENTENE CORPORATION ($NYSE:CNC) reported its financial results for the second quarter of FY2023, which ended on June 30 2023, on July 28 2023. Total revenue for the period reached USD 37608.0 million, a 4.7% increase from the same quarter of the previous year. Net income for the quarter was USD 1058.0 million, a significant improvement from the net loss of -172.0 million recorded in the year-ago period.
Price History
On Friday, CENTENE CORPORATION released their financial report for the second quarter FY2023, ending June 30th 2023. This marked a significant drop in their stock price, as it opened at $69.1 and closed at $66.2, a decrease of 5.4% from it’s last closing price of 70.0. The report also indicated that the company had invested heavily in the development of new health technology, such as telemedicine services and AI-driven health analytics tools. This increased focus on innovation is expected to help them maintain their competitive advantage in the future, despite the current economic environment.
Overall, although the company’s second quarter report showed promising results, investors remain cautious due to the uncertain economic impact from the ongoing pandemic. Investors will continue to monitor CENTENE CORPORATION’s performance for further updates on their financial situation. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Centene Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 147.92k | 2.71k | 1.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Centene Corporation. More…
| Operations | Investing | Financing |
| 8.57k | -453 | -4.15k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Centene Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 82.85k | 57.07k | 47.02 |
Key Ratios Snapshot
Some of the financial key ratios for Centene Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.3% | 5.1% | 3.1% |
| FCF Margin | ROE | ROA |
| 5.2% | 11.2% | 3.4% |
Analysis
At GoodWhale, we have analysed the fundamentals of CENTENE CORPORATION in order to give a comprehensive overview. According to the Star Chart, CENTENE CORPORATION has an impressive health score of 8/10, indicating that it is capable of sustaining future operations in times of crisis due to its strong cashflows and debt. After further research, we have classified CENTENE CORPORATION as a ‘cheetah’ type of company, as it has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Given its strong growth, medium asset strength, moderate profitability and weak dividend potential, this company may be of particular interest to investors who are looking to reap the rewards of short-term returns, rather than those who are looking to make a long-term investment. More…
Peers
In the world of health insurance providers, Centene Corp faces some stiff competition. Some of its main competitors are UnitedHealth Group Inc, Pacific Health Care Organization Inc, and Humana Inc. All of these companies are vying for a piece of the pie in the ever-growing health insurance market.
– UnitedHealth Group Inc ($NYSE:UNH)
UnitedHealth Group Inc is an American for-profit managed health care company based in Minnetonka, Minnesota. It offers health care products and services through its subsidiaries, UnitedHealthcare and Optum. As of 2022, it has a market cap of 486.7B and a ROE of 21.75%.
The company’s main business is UnitedHealthcare, which provides health care coverage and benefits services to individuals, families, and businesses through plans sold by state and federal governments, employers, and directly to consumers through the Health Insurance Marketplace. Optum is the company’s health services business, which provides technology and information-enabled health services, including provider network management, care management, clinical decision support, and consumer engagement.
– Pacific Health Care Organization Inc ($OTCPK:PFHO)
As of 2022, Pacific Health Care Organization Inc has a market cap of 10.11M. The company has a return on equity of 1.33%. Pacific Health Care Organization Inc is a healthcare organization that provides services to patients in the Pacific region. The company offers a wide range of services, including primary care, mental health, and substance abuse services. The company also operates a network of clinics and hospitals in the Pacific region.
– Humana Inc ($NYSE:HUM)
Humana Inc. is a for-profit American health insurance company based in Louisville, Kentucky. As of 2019, Humana has had over 13 million customers in the United States. The company offers health, dental, and vision insurance plans, as well as Medicare and Medicaid plans. Humana also offers a wide range of supplemental plans, such as life insurance, long-term care insurance, and pet insurance.
Summary
CENTENE CORPORATION reported a strong second quarter of FY2023 for the period ended June 30 2023, with total revenue increasing by 4.7% year-over-year. Net income improved from a year-ago loss to reach USD 1058.0 million. Despite this positive news, the stock price of the company moved down on the same day.
For investors seeking an analysis of CENTENE CORPORATION’s performance, it is worth noting that the company has been able to convert its revenue growth into improved profitability during the quarter, which may be indicative of a positive operating environment for the company. It will be interesting to observe how the company performs in the coming quarters.
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