Centene Corporation stock research
FY2024 Q4
Centene (CNC) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit decreased compared to the previous quarter but increased compared to the same quarter last year. Cost of revenue was lower versus both periods, and gross margin weakened slightly from the prior quarter and the year-ago quarter.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and gross profit decreased compared to the previous quarter but increased compared to the same quarter last year. Cost of revenue was lower versus both periods, and gross margin weakened slightly from the prior quarter and the year-ago quarter.
- The most observable margin driver is the variation in cost of revenue, which declined year-over-year while revenue grew, contributing to a higher gross profit. However, gross margin edged lower as the proportion of gross profit to revenue decreased.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin declined. Relative to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
10.5%
Gross profit
$3.8B
Revenue
$36.3B
Cost of revenue
$688.0M
Quarter-over-quarter change
-0.4 pts
Year-over-year change
-0.1 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, 2024 | $36.3B | $4.7B | $669.0M | 13.0% |
| Jun 30, 2024 | $36.0B | $4.5B | $680.0M | 12.6% |
| Sep 30, 2024 | $36.9B | $4.0B | $692.0M | 10.9% |
| Dec 31, 2024 | $36.3B | $3.8B | $688.0M | 10.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-0.4 pts
Year-over-year change
Dec 31, 2023
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver is the variation in cost of revenue, which declined year-over-year while revenue grew, contributing to a higher gross profit. However, gross margin edged lower as the proportion of gross profit to revenue decreased.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin declined. Relative to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was lower, and gross margin was slightly lower.
Monitor the timing of pharmacy rebate remittances associated with the transition to a new third-party PBM, as noted in the liquidity discussion.