Centene Corporation stock research
FY2023 Q2
Centene (CNC) Gross Margin — Quarter Ended Jun 30, 2023
For the quarter, revenue was slightly lower than the immediately preceding quarter but higher than the same quarter one year earlier, while gross profit remained unchanged across all three periods. Cost of revenue was substantially lower than the year-ago quarter, resulting in a gross margin that was slightly lower than both the prior quarter and the year-ago quarter.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
For the quarter, revenue was slightly lower than the immediately preceding quarter but higher than the same quarter one year earlier, while gross profit remained unchanged across all three periods. Cost of revenue was substantially lower than the year-ago quarter, resulting in a gross margin that was slightly lower than both the prior quarter and the year-ago quarter.
- The strongest observable margin driver is the stability of gross profit despite changes in revenue and cost of revenue, which kept the gross margin within a narrow range. The filing notes that operating cash flows were supported by net earnings and early CMS payments, though this is not directly tied to margin performance.
- Compared with the immediately preceding quarter, revenue was slightly lower, gross profit was unchanged, and gross margin weakened marginally. Compared with the same quarter one year earlier, revenue was higher, gross profit was unchanged, and gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
13.2%
Gross profit
$4.6B
Revenue
$34.8B
Cost of revenue
$877.0M
Quarter-over-quarter change
-0.1 pts
Year-over-year change
-0.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $35.0B | $4.6B | $870.0M | 13.3% |
| Jun 30, 2023 | $34.8B | $4.6B | $877.0M | 13.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-0.1 pts
Year-over-year change
Jun 30, 2022
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the stability of gross profit despite changes in revenue and cost of revenue, which kept the gross margin within a narrow range. The filing notes that operating cash flows were supported by net earnings and early CMS payments, though this is not directly tied to margin performance.
Compared with the immediately preceding quarter, revenue was slightly lower, gross profit was unchanged, and gross margin weakened marginally. Compared with the same quarter one year earlier, revenue was higher, gross profit was unchanged, and gross margin was slightly lower.
Monitor the cost of revenue line item, as it showed a substantial year-over-year decline while gross profit remained constant, creating a significant shift in the relationship between revenue and cost.