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Centene Corporation has unexpectedly pulled its earnings guidance for 2025 due to higher-than-expected morbidity and slower market growth in the health insurance marketplace. This led to a $1.8 billion shortfall in net risk adjustment revenues and a $2.75 impact on adjusted diluted EPS for 2025. Analysts have slashed their EPS projection for this year, cutting the Zacks profit consensus in half from $7.29 to $3.55. Centene is taking proactive steps to adjust its rates to account for a higher morbidity baseline.

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