Valued at a market cap of $38.7 billion, Centene Corporation (CNC) operates as a healthcare enterprise that provides services to government-sponsored healthcare programs, under-insured and uninsured families, commercial organizations, and military families. The Saint Louis, Missouri-based company also provides education and outreach programs to inform and assist members in accessing quality and appropriate healthcare services. CNC is expected to announce its fiscal Q3 earnings results before the market opens on Friday, Oct. 25. 

Ahead of this event, analysts expect the healthcare company to report a profit of $1.47 per share, down 26.5% from $2.00 per share in the year-ago quarter. The company surpassed Wall Street's earnings estimates in three of the last four quarters while missing on another occasion. 

Its adjusted earnings of $2.42 per share for the last quarter slightly lagged behind the consensus estimates. The results were primarily impacted by an 8% year-over-year decline in revenues from the Medicaid segment, reduced Medicaid memberships, lower service revenues, and higher operating expenses. 

For fiscal 2024, analysts expect CNC to report an EPS of $6.80, up 1.8% from $6.68 in fiscal 2023. 

Shares of CNC have declined 2.5% on a YTD basis, significantly underperforming both the S&P 500 Index's ($SPX) 22.6% surge and the Health Care Select Sector SPDR Fund’s (XLV) nearly 12.7% return over the same period.

Despite missing consensus earnings estimates, shares of CNC jumped 8.5% following its Q2 earning release on Jul. 26 as its revenue of $39.84 billion surpassed the Wall Street estimates of $36.51 billion. Moreover, the company’s 34% marketplace membership growth and robust commercial segment revenue growth might have bolstered investor confidence. 

Analysts' consensus view on Centene Corporation’s stock is moderately optimistic, with a "Moderate Buy" rating overall. Among 17 analysts covering the stock, eight recommend a "Strong Buy," and nine suggest a "Hold." This configuration is slightly less bullish than three months ago, with nine analysts suggesting a "Strong Buy." 

The average analyst price target for CNC is $86, indicating a 19.3% potential upside from the current levels.

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