Centene Corporation stock research
FY2024 Q1
Centene (CNC) Gross Margin — Quarter Ended Mar 31, 2024
Net revenue rose while cost of revenue fell, leading to a higher gross profit and an improved gross margin compared to the prior quarter. Relative to the same quarter last year, revenue was higher but cost of revenue was lower, resulting in a slightly lower gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Net revenue rose while cost of revenue fell, leading to a higher gross profit and an improved gross margin compared to the prior quarter. Relative to the same quarter last year, revenue was higher but cost of revenue was lower, resulting in a slightly lower gross margin.
- The decline in cost of revenue was the strongest observable margin driver, as it decreased from the prior quarter and from the year-ago quarter, supporting the sequential improvement in gross margin.
- Sequentially, gross margin improved from the prior quarter, benefiting from higher revenue and lower cost of revenue. Year over year, gross margin weakened slightly, as revenue growth was accompanied by a proportionally smaller increase in gross profit.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
13.0%
Gross profit
$4.7B
Revenue
$36.3B
Cost of revenue
$669.0M
Quarter-over-quarter change
+2.4 pts
Year-over-year change
-0.3 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $34.8B | $4.6B | $877.0M | 13.2% |
| Sep 30, 2023 | $35.0B | $4.6B | $856.0M | 13.2% |
| Dec 31, 2023 | $35.3B | $3.7B | $961.0M | 10.6% |
| Mar 31, 2024 | $36.3B | $4.7B | $669.0M | 13.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+2.4 pts
Year-over-year change
Mar 31, 2023
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in cost of revenue was the strongest observable margin driver, as it decreased from the prior quarter and from the year-ago quarter, supporting the sequential improvement in gross margin.
Sequentially, gross margin improved from the prior quarter, benefiting from higher revenue and lower cost of revenue. Year over year, gross margin weakened slightly, as revenue growth was accompanied by a proportionally smaller increase in gross profit.
Monitor the trend in cost of revenue, which declined notably this quarter, to assess whether it can be sustained.