:max_bytes(150000):strip_icc()/GettyImages-2007442507-b7c3c118923c409a90a53331ff2dfcb1.jpg "Centene Stock Pops on Membership Growth, Premium and Service Sales")
:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2007442507-b7c3c118923c409a90a53331ff2dfcb1.jpg)
Key Takeaways
- Centene grew its membership rolls and premium and service revenue in the third quarter, and shares surged Friday.
- The managed care and health insurance provider beat profit and sales estimates, and boosted its outlook.
- CEO Sarah London said the company navigated “a dynamic landscape” in the quarter.
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.
TradingView