Centene Lifts FY22 Guidance On Higher Medicaid Premiums; Increases Share Buyback

Ahead of its investor day, Centene Corp CNC increased its Premium and Service Revenues FY22 guidance range by $2.0 billion to $134.3 billion - $136.3 billion.
The company also increased adjusted EPS guidance by $0.15 to $5.55 - $5.70 vs. the consensus of $5.49.
The company's 2022 financial guidance has been updated to reflect increased Medicaid premium revenue, mirroring the assumed ongoing suspension of Medicaid eligibility redeterminations to November 1 and good Q2 performance to date, primarily in Marketplace.
Related: Centene Offloads Two Pharmacy Businesses For $2.8B.
Following a strategic review of the company's real estate portfolio, it has initiated a reduction of its real estate footprint.
As a result, Centene expects to record estimated pre-tax costs, including impairments of approximately $750 million - $800 million attributable to leased space and $750 million - $850 million attributable to owned real estate.
The costs are expected to be recorded primarily during Q2 and Q3. The company expects to decrease its leased real estate expense by an annualized run rate of $180 million to $200 million.
Centene has also authorized a $3.0 billion increase to the company's existing stock repurchase program and a new $1.0 billion debt repurchase program.
Price Action: CNC shares are up 0.16% at $76.80 during the market session on the last check Friday.

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