Health insurer Centene reports surprise loss on rising medical costs (Reuters) -Centene on Friday posted a surprise quarterly loss, partly hurt by higher medical costs related to its insurance plans, sending its shares tumbling nearly 13% in premarket trading. The health insurance industry has seen elevated medical costs and changing enrollment patterns, at a time when it braces for big spending cuts and rule changes under the Trump administration. "We are disappointed by our second-quarter results, but we have a clear understanding of the trends that have impacted our performance, and are working with urgency and focus to restore our earnings trajectory," CEO Sarah London said. Rivals Elevance and Molina Healthcare (NYSE:MOH) have also warned of elevated costs in government-backed insurance plans. Centene (NYSE:CNC) reported a medical cost ratio, the percentage of premiums spent on medical care, of 93% in the second quarter, compared with analysts’ expectation of 89.34%. The increase was driven by a reduction in net 2025 marketplace risk adjustment revenue as well as higher medical costs in Medicaid, driven mainly by behavioral health, home health and high-cost drugs. For the second quarter, the health insurer reported adjusted loss per share of 16 cents, compared to analysts estimates of a profit of 86 cents, according to data compiled by LSEG. Don't miss out on the next big opportunity! Stay ahead of the curve with ProPicks – 6 model portfolios fueled by AI stock picks with a stellar performance this year.. In 2024 alone, ProPicks' AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record. With portfolios tailored for Dow stocks, S&P stocks, Tech Stocks, and Mid Cap stocks, you can explore various wealth-building strategies. So if MOH is on your watchlist, it could be very wise to know whether or not it made the ProPicks lists.

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US refiner Phillips 66 posts bigger-than-expected quarterly loss as margins bite By Vallari Srivastava and Nicole Jao (Reuters) -Phillips 66 reported a bigger-than-expected loss for the first quarter on Friday, hurt by lower refining margins amid heavy turnaround activities across the U.S. refining sector. U.S. refineries typically undergo seasonal maintenance and turnaround activities in preparation for the summer driving season, when fuel demand significantly increases. The scheduled downtime temporarily reduces refinery utilization, and the ability to capture revenue from margins. "Our results reflect not only a challenging macro environment, but also the impact from one of our largest-ever spring turnaround programs," said CEO Mark Lashier. Phillips 66 (NYSE:PSX)’s refining unit posted a net loss of $937 million for the first quarter, compared with a year-ago profit of $216 million. Shares of the company fell 1.4% to $103.27 in mid-day trade. Realized refining margins fell 38% to $6.81 per barrel during the quarter, with turnaround costs rising more than two-fold to $270 million. Crude capacity utilization stood at 80% compared with 92% last year. Phillips 66’s results echo those of rival Valero Energy (NYSE:VLO), which on Thursday reported a quarterly loss due to lower refining margins. However, with the bulk of the planned turnarounds completed and margins improving its refineries are well set to run at high utilization for the remainder of the year, Chief Financial Officer Kevin Mitchell said on Friday during a conference call with analysts. "As you look into April, we’re seeing margins that are $3 to $4 per barrel higher than where we were on average in the first quarter." The results come amid a heated boardroom battle between Phillips and Elliott Investment Management, an activist investor that is pushing for changes in the refiner’s organization structure, operations and board. The U.S. energy sector is also bracing for the impact of President Donald Trump’s tariffs and a rapidly intensifying trade war with China. The company posted an adjusted loss of 90 cents per share for the first quarter, compared with analysts’ estimates of 72 cents apiece, according to data compiled by LSEG.

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