Centene's Q4 Profits Reach $45M On Higher Membership, Premium As Enrollments Increase

Centene Corporation CNC reported fourth-quarter sales of $39.5 billion, up 11% Y/Y, beating the consensus of $36.14 billion.

The company reported a fourth-quarter net profit of $45 million, a turnaround from the loss of $(213) million a year ago.

For the fourth quarter of 2023, premium and service revenues increased 5% to $35.3 billion, driven by membership growth in the Marketplace business due to strong product positioning and overall market growth.

The company reported an adjusted EPS of $0.45, down from $0.86 a year ago, beating the consensus of $0.43.

Health benefits ratio (HBR) of 89.5% for the fourth quarter of 2023 represents an increase from 88.7% in the comparable period in 2022.

Also Read: Affordable Care Act Enrollment Highest Since Inception: Obamacare Enrollment Witnesses 31% Jump in 2024.

Centene said total managed care membership increased to 27.47 million, compared to 27.06 million at the end of the fourth quarter of 2023. 

Centene's enrollment in individual coverage under the Affordable Care Act, "commercial marketplace" business nearly doubled to 3.9 million members from 2 million a year ago.

Guidance: Centene increases its fiscal year 2024 premium and service revenues guidance by $2.5 billion to $134.5 billion-$137.5 billion, reflecting additional commercial premium revenue from stronger than expected marketplace open enrollment.

Centene reiterates its fiscal year 2024 adjusted EPS guidance floor of greater than $6.70 versus the consensus of $6.75

In December, Centene outlined its 2024 financial guidance and updated its long-term strategic plan.

The company forecasted fiscal year revenues of $142.5 billion-$145.5 billion compared to the consensus of $143.53 billion. The guidance included premium and service revenues guidance of $132.0 billion-$135.0 billion.

Read Next: Medicare Patients Alert! Biden Administration Finalizes Rule to Streamline Health Insurance Prior Authorization.

Price Action: CNC shares are up 0.87% at $74.72 on the last check Tuesday.

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