Centene Stock Pops on Membership Growth, Premium and Service Sales

Centene (CNC) shares surged more than 10% Friday morning as the managed care and health insurance provider’s third-quarter results easily beat estimates as it boosted its membership rolls and premium and service revenue.

The company reported adjusted earnings per share (EPS) of $1.62, with revenue up more than 10% year-over-year at $42.02 billion. Both were well above consensus forecasts of analysts polled by Visible Alpha.

Membership totaled 28.64 million compared with 27.97 million a year earlier, lifted by a 22% gain in Marketplace and 49% advance in Medicare Prescription Drug Plans. Premium and service revenue grew almost 6% to $36.90 billion.

Centene noted that based on ratings from the Centers for Medicare and Medicaid Services (CMS), it had about 46% of its Medicare Advantage enrollees in plans rated 3.5 stars or higher, up from 23% in the prior year.

CEO Says Centene Navigated ‘Dynamic Landscape’ During Quarter

Chief Executive Officer (CEO) Sarah London said the company’s “diversified portfolio has allowed us to successfully navigate a dynamic landscape in the quarter.”

Centene expects full-year revenue in a range of $159 billion to $161 billion, up from its earlier outlook of $155 billion to $157 billion.

Despite today’s jump, shares of Centene remain down about 9% for 2024.