This insurance/healthcare company beat analysts’ estimates in its latest quarter, earning $0.95 compared to the $0.85 consensus forecast. Revenue, at $6.3 billion, also topped the $6.14 billion estimate. Two analysts increased their 2016 earnings forecasts in the past 30 days. The mean consensus price target for the stock is $81.94, 52% higher than the current share price.
Centene (CNC)
From Dow Theory Forecasts
Centene (CNC) announced preliminary December-quarter results, with per-share earnings rising 9% to $0.95 excluding expenses from its pending Health Net (HNT) acquisition. Total revenue jumped 33% to $6.3 billion, also above the consensus.
The company also plans to issue $2.27 billion of debt to help fund its Health Net merger, which still requires regulatory approval. Centene expects to complete the deal early this year.
The company also said it is searching for six missing hard drives containing personal information—but not financial or payment details—for 950,000 members. Centene expects little fallout from the missing hard drives, reflected by it reaffirming 2016 guidance, originally issued in December.
Centene is a Buy and a LongTerm Buy.
Richard J. Moroney, CFA, Dow Theory Forecasts, www.dowtheory.com, 800-233-5922, February 1, 2016