Centene Shares Pop On Q3 Beat, Lifts Annual Revenue Guidance

Centene Shares Pop On Q3 Beat, Lifts Annual Revenue Guidance
  • Centene Corp CNC has reported a Q3 FY22 adjusted EPS of $1.30, compared to $1.26 a year ago, beating the consensus estimate of $1.24.
  • Sales increased 11% Y/Y to $35.87 billion, slightly beating the consensus of $35.47 billion.
  • The Health Benefits Ratio of 88.3% was up from 88.1% a year ago due to a return to more normalized traditional Medicaid medical utilization.
  • Managed care membership reached 26.76 million, +4.53% Y/Y.
  • "Our strong third quarter and year-to-date results provide Centene with positive momentum as we move towards 2023," said Sarah M. London, Chief Executive Officer of Centene. "Selecting our future PBM partner represents a major Value Creation Plan milestone and positions us to capture significant value for our members, partners, and stakeholders in 2024 and beyond."
  • FY 2022 Guidance: Centene has updated its sales guidance to $142.7-$144.7 billion (consensus of $143.63 billion), vs. the prior guidance of $141.6-$143.6 billion. It expects Premium and Service Revenues of $134-$136 billion (prior view $133.3-$135.3 billion).
  • The company expects an adjusted EPS of $5.65-$5.75 compared to the previous range of $5.60 - $5.75 vs. the consensus of $5.71.
  • Price Action: CNC shares are up 6.13% at $80.46 on the last check Tuesday.

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