Centene (NYSE:CNC) reported a surprise quarterly loss on Friday, citing revenue declines linked to its government-sponsored health programs, which led to a significant earnings shortfall.
The health insurer’s stock fell more than 10% in premarket trading.
Centene recorded a second-quarter loss of $0.16 per share, well below analyst estimates of earnings of $0.39 per share.
Revenue for the quarter reached $48.74 billion, surpassing the consensus estimate of $44.24 billion.
“We are disappointed by our second quarter results, but we have a clear understanding of the trends that have impacted our performance, and are working with urgency and focus to restore our earnings trajectory,” said Centene CEO Sarah M. London.
Earlier in July, Centene withdrew its 2025 earnings guidance, pointing to expected revenue decreases from commercial plans under the Affordable Care Act, which rely on income-based government subsidies.
Premium and service revenues totaled $42.5 billion in Q2.
The health benefits ratio was reported at 93%, while the adjusted selling, general, and administrative expense ratio stood at 7.1%.
Operating cash flow for the quarter was $1.8 billion.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.