Benzinga - by Vandana Singh, Benzinga Editor.
Centene Corporation (NYSE:CNC) reported first-quarter sales of $40.41 billion, up 11% Y/Y, beating the consensus of $36.14 billion.
Premium and service revenues increased 4% to $36.3 billion, driven by membership growth in the Marketplace business due to strong product positioning and overall market growth, partially offset by recent divestitures in the Other segment and lower Medicaid membership primarily due to redeterminations.
The health benefits ratio of 87.1% for the first quarter of 2024 represented an increase from 87.0% in the comparable period in 2023.
Related: See How Florida’s Much Awaited Medicaid Re-Procurement Awards Impact Centene, Humana, Molina.
The company reported a first-quarter adjusted EPS of $2.26, up from $2.11 a year ago, beating the consensus of $2.08.
“Centene’s first quarter results demonstrate the strength of our diversified platform,” Centene CEO Sarah London said in a statement accompanying the company’s earnings report. “We are pleased to raise full-year 2024 guidance as we look to maximize the positive momentum being generated by our core businesses.”
Centene said total managed care membership held steady at 28.42 million at the end of the first quarter of this year, compared to 28.45 million a year ago.
Centene’s enrollment in its “commercial marketplace” business grew to 4.3 million members from 3 million a year ago.
Premium revenues from Commercial business increased 48% Y/Y to $7.8 billion.
Total Medicaid memberships fell over 18% to 13.3 million from 16.3 million.
Guidance: Centene revised its 2024 adjusted EPS guidance floor of greater than $6.80 versus prior guidance of greater than $6.70 versus consensus of $6.78.
Centene expected 2024 revenue guidance of $147.5 billion-$150.5 billion versus the consensus Of $146.14 billion, including premium and service revenues of $135.5 billion-$138.5 billion versus prior guidance of $134.5 billion-$137.5 billion.
CNC Price Action: Centine shares are down 4.11% at $72.57 at publication Friday.
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