Insurance Firm Centene Sees Q4 Revenue Boost, Sticks To Annual Forecast

On Tuesday, Centene Corporation CNC reported fourth-quarter sales of $40.80 billion. That’s up 3.41% year-over-year, beating the consensus of $39.13 billion.

Centene earned an adjusted EPS of 80 cents during the quarter, beating the consensus of 49 cents. For the fourth quarter of 2024, premium and service revenues increased 3% to $36.3 billion from $35.3 billion in the comparable period of 2023.

A health benefits ratio (HBR) of 89.6% for the fourth quarter of 2024 represents an increase from 89.5% in the comparable period in 2023. The increase was primarily driven by higher acuity in Medicaid, which resulted from the redetermination process.

The company also saw Membership increases of 12% in Marketplace and 50% in Medicare PDP, compared to the fourth quarter of 2023.

Also Read: RFK Jr. And Big Pharma: Health Secretary Hopeful Answers Pointed Questions On Drugs, Insurance, Trump Exec Orders

“Despite a year of unprecedented industry headwinds, Centene demonstrated significant operational improvements, strengthened our talent bench, and delivered on our financial commitments in 2024,” said CEO Sarah London. 

Centene reported 28.6 million members as of December 31, up from 27.5 million in 2023.

Enrollment in its Medicaid plans dipped as redeterminations completed, from 14.5 million to 13 million. Marketplace coverage increased year over year, growing from 3.9 million to 4.4 million.

Guidance: Centene said it will raise its premium and service revenue guidance window by $4 billion. The company now expects to bring in between $158 billion and $160 billion for 2025.

In December, the company outlined 2025 guidance with premium and service revenues of $154 billion to $156 billion. The company expects total revenue between $166.5 billion and $169.5 billion.

Centene reaffirms FY2025 adjusted EPS of greater than $7.25 compared to consensus of $7.22.

Price Action: Centene stock is down 5.13% at $61.50 at last check Tuesday.

Read Next:

• Enterprise Products Beats Q4 Forecasts, Targets $6 Billion In 2025 Expansions