:max_bytes(150000):strip_icc()/GettyImages-2007442507-b7c3c118923c409a90a53331ff2dfcb1.jpg "Centene Beats Estimates, Boosts Guidance on Higher Premiums, Memberships")
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Key Takeaways
- Centene posted better-than-expected results and boosted its guidance as it made more from premiums and services and increased members.
- The managed care provider’s commercial marketplace revenue jumped 49% year-over-year.
- CEO Sarah London pointed to the company’s diverse portfolio for the strong results.
Centene (CNC) shares jumped in intraday trading Friday as the managed care provider reported better-than-expected profit and sales and raised its guidance as its premium and services sales and members increased.
The company posted second-quarter adjusted earnings per share (EPS) of $2.42, with revenue gaining 5.9% year-over-year to $39.84 billion. Analysts polled by Visible Alpha were expecting adjusted EPS of $2.11 on revenue of $36.79 billion.
Premium and services revenue was up 3.3% to $35.97 billion, also ahead of forecasts. The total was driven higher by the Commercial marketplace, which had sales soar 49% to $8.54 billion. Medicare coverage revenue rose 6% to $5.98 billion, but Medicaid coverage revenue fell 8% to $20.25 billion.
Memberships increased by 65,800 to 28.48 million.
CEO Says Centene Has ‘Work To Do’ in Medicaid
Chief Executive Officer (CEO) Sarah London said that while Centene has “work to do” in Medicaid as redeterminations wind down, “the overall performance of the diversified portfolio enables us to remain on track for 2024 adjusted diluted EPS guidance,” which the company reiterated would be at least $6.80.
However, Centene lifted its full-year premium and service revenue outlook to a range of $141.0 billion to $143.0 billion from the previous $135.5 billion to $138.5 billion. It sees total revenue of $155.0 billion to $157.0 billion, up from the earlier forecast of $147.5 billion to $150.5 billion.
Shares of Centene jumped 10% to $74.19 as of 1:30 p.m. ET Friday but are essentially flat year-to-date.