US EditionCENTENE CORPORATION WITHDRAWS 2025 GUIDANCE
- On July 1, 2025, Centene Corporation retracted its full-year financial outlook for 2025, including earnings per share projections, due to a significant anticipated shortfall in risk adjustment revenue within the U.S. market.
- The company cited a decrease of about $1.8 billion in anticipated federal risk adjustment revenue transfers and increasing medical cost pressures, particularly within Medicaid, as the reasons for withdrawing its guidance.
- An independent actuarial report covering 22 of Centene's 29 ACA Marketplace states showed lower market growth and significantly higher morbidity than previously assumed, with cost pressures concentrated in New York and Florida.
- These developments caused Centene’s shares to drop over 40% on July 2, 2025, the worst single-day loss in company history, while analyst Jim Cramer called the update "a huge hit" and warned investors to avoid the sector.
- The company is revising its 2026 Marketplace pricing in key states and plans to release its Q2 2025 financial results with further details on July 25, 2025; however, it anticipates ongoing Medicaid cost challenges and uncertain effects on profitability.
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Shares of managed care provider Centene Corp. (NYSE: CNC) dropped over 40% on Wednesday, marking the worst single-day performance in the company's history.
·New York, United States
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·Cherokee County, United States
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Coverage Details
Total News Sources41
Leaning Left6Leaning Right3Center11Last UpdatedBias Distribution55% Center
Bias Distribution
- 55% of the sources are Center
55% Center
L 30%
C 55%
15%
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