Centene Corp

CNC: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$16.00	Tvqydp	Ghczhhfg

Centene Earnings: Management Resets Outlook Through 2024 but Leaves Long-Term View Intact

Julie Utterback

Apr 25, 2023

Narrow-moat Centene turned in strong first-quarter results, and the company increased its guidance for the full year. However, given emerging headwinds primarily in Medicaid and Medicare Advantage, management reduced its expectations for 2024 before reiterating its long-term guidance for 12% to 15% growth on that reduced 2024 EPS base. Despite the emerging 2024 headwinds, we do not anticipate changing our $87 fair value estimate, which is based on much longer-term assumptions that haven't changed materially.

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