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Investing.com -- Centene (NYSE:CNC) on Friday posted an unexpected quarterly loss as the health insurer flagged a decline in revenue tied to its government-sponsored programs.
The company’s shares sank more than 10% in premarket trading.
Centene reported a second-quarter loss of $0.16 per share, a far cry from analyst expectations, who were forecasting earnings per share of $0.39.
Revenue for the period reached $48.74 billion, above the consensus estimate of $44.24 billion.
"We are disappointed by our second quarter results, but we have a clear understanding of the trends that have impacted our performance, and are working with urgency and focus to restore our earnings trajectory," said Centene CEO Sarah M. London.
Earlier in July, Centene pulled its 2025 earnings guidance, citing an anticipated drop in revenue from commercial plans offered through the Affordable Care Act, which provide income-based government subsidies.
The company’s premium and service revenues totaled $42.5 billion in Q2.
The health benefits ratio stood at 93%, while the adjusted selling, general, and administrative expense ratio was 7.1%.
Operating cash flow for the quarter came in at $1.8 billion.