Centene, Molina Post Solid 1Q Earnings, but Investors Remain Skeptical
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Apr 25, 2025
Centene Corp. and Molina Healthcare, Inc., two of the largest managed Medicaid insurers in the U.S., each reported first-quarter results that exceeded analyst expectations. Analysts noted that the companies have adjusted to a changing Medicaid segment that has stabilized somewhat following a difficult 2024 that saw the resumption of eligibility redeterminations, high costs and utilization, and too-low reimbursement from states. However, the insurers’ stock prices each declined, with Centene’s falling more than 7% in early trading after the company announced its results on April 25 and Molina’s declining 6% after releasing results on April 23.
Centene had adjusted earnings per share (EPS) of $2.90 in the quarter, above the $2.60 Wall Street consensus estimate, while the company generated $46.6 billion of revenue, significantly higher than the $43 billion consensus. Centene also had a medical loss ratio (MLR) of 87.5%, slightly below (better than) the 87.6% consensus. The company is the nation’s largest Medicaid and Affordable Care Act exchange insurer as measured by number of lives, with nearly 13 million and 5.6 million members, respectively.
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