Latest news with #earningsforecast
Reuters
01-07-2025
- Business
- Reuters
Centene pulls 2025 earnings forecast after hit to marketplace revenue
July 1 (Reuters) - Centene (CNC.N), opens new tab said on Tuesday it had withdrawn its 2025 earnings forecast after new industry data showed a significant drop in expected revenue from its marketplace health insurance plans. Shares of the U.S. health insurer declined nearly 22% in extended trading. The company said preliminary data from 22 of the 29 U.S. states where Centene offers marketplace plans suggested a $1.8 billion drop in risk adjustment revenue, equivalent to a $2.75 hit to adjusted earnings per share. Centene had previously forecast 2025 adjusted earnings per shares of more than $7.25. The shortfall reflects higher-than-expected patient morbidity, or a sicker population, and slower market growth in those 22 states, which represent about 72% of Centene's marketplace membership, the company said. The data was provided by independent actuarial firm Wakely. The drop in risk adjustment payments, which are meant to balance costs for covering higher-risk patients, is likely to weigh on Centene's earnings this year. The company also reported elevated Medicaid medical costs in states like New York and Florida, particularly in behavioral health, home care and drug spending, and said it expects its second-quarter medical costs to be higher as a result. In the first quarter, the company faced elevated costs in its government-backed Medicaid plans for lower-income groups. Insurers who offer Medicaid plans have seen elevated costs over the past few quarters after the end of a pandemic-era policy. As states re-determined eligibility for the plans, healthier members fell off the rolls, leaving behind those who require more medical services. Industry bellwether UnitedHealth (UNH.N), opens new tab in May also suspended its annual forecast due to surging medical costs. Centene offers insurance plans under the federal Obamacare marketplace. It is the largest marketplace carrier, serving 4.4 million members across 29 states as of December 31 under the brand name Ambetter Health, the company said in an annual filing. Centene plans to report its quarterly results on July 25.
Bloomberg
28-05-2025
- Business
- Bloomberg
HP Profit Outlook Falls Short on Tariffs Costs, Economy
HP Inc. gave a profit outlook for the current quarter that fell short of expectations, and cut its annual earnings forecast, pointing toward a weaker economy and continuing costs from US tariffs on goods from China. The shares fell about 15% in extended trading. Earnings, excluding some items, will be 68 cents to 80 cents a share in the period ending in July, the maker of computers and printers said Wednesday in a statement. Analysts, on average, estimated 91 cents. Fiscal second-quarter profit was 71 cents a share, compared with the average estimate of 81 cents. Profit was dented by 12 cents from the impact related to tariffs and HP's spending to move manufacturing out of China, said Chief Financial Officer Karen Parkhill.
