Centene Says Q2 In Line With Expectations Outlined During June Investor Day, Ups FY22 Guidance

Centene Corporation CNC has reported a Q2 FY22 adjusted EPS of $1.77, compared to $1.25 a year ago, beating the consensus estimate of $1.59.
Sales increased 16% Y/Y to $35.9 billion, slightly beating the consensus of $35.55 billion.
Health Benefits Ratio of 86.7%, was down from 88.3% a year ago due to a return to more normalized traditional Medicaid medical utilization.
Managed care membership reached 26.4 million, +7.2% Y/Y.
The Cost of Service ratio was 85.4% compared to 89.6%, driven by the acquisition of the Circle Health business, which operates at a lower cost of service ratio.
FY 2022 Guidance: Centene has updated its guidance to reflect the sale of PANTHERx and corresponding gain along with real estate optimization impairment charges.
It expects sales of $141.6 billion - $143.6 billion (consensus of $142.59 billion), with Premium and Service Revenues of $133.3 billion - $135.3 billion versus the prior guidance of $134.3 billion - $136.3 billion.
The company expects an adjusted EPS of $5.60 - $5.75 compared to the previous range of $5.55 - $5.70 vs. the consensus of $5.59.
Price Action: CNC shares closed at $91.93 on Monday.

Momentum32.69

Growth71.74

Quality8.88

Value69.37

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