- Centene’s 4Q adjusted EPS was 45c, beating estimates of 44c and showing a decrease from 86c year on year.
- Revenue for the company was $39.46 billion, an 11% increase year on year and higher than the estimated $35.99 billion.
- Medicaid revenue stood at $21.11 billion, a 9.5% decrease year on year, and lower than the estimated $22.38 billion.
- Commercial revenue was $7.41 billion, a significant 68% increase year on year and higher than the estimated $6.83 billion.
- Medicare revenue was $5.29 billion, a 2.9% decrease year on year and slightly lower than the estimated $5.3 billion.
- Other revenue was $1.53 billion, a 36% decrease year on year, but higher than the estimated $1.42 billion.
- The health benefits ratio was 89.5%, slightly higher than the 88.7% year on year, and in line with estimates.
- Managed care membership increased by 1.5% year on year to 27.47 million.
- Premium tax and health insurer fee was $4.12 billion, a significant increase from $2.01 billion year on year and higher than the estimated $2.21 billion.
- Centene is increasing its 2024 premium and service revenues guidance range by $2.5 billion to a range of $134.5 billion to $137.5 billion, due to additional commercial premium revenue from a stronger than expected marketplace open enrollment.
- The company maintains its 2024 adjusted diluted EPS guidance floor of greater than $6.70.
- There were 11 buys, 9 holds, and 0 sells for the company.
Centene Corp on Smartkarma
Centene Corporation has been receiving positive analyst coverage on Smartkarma, an independent investment research network. According to a report by Baptista Research, Centene Corporation has managed to exceed analyst expectations in terms of revenue and earnings. The company’s revenue for the quarter was higher than what analysts predicted, and they also increased their expectation for 2023 premium and service revenue by an additional $1.8 billion. The report also noted that the company’s commercial HBR (health benefits ratio) met expectations, thanks to the addition of 200,000 new members and the ongoing growth of the marketplace.
A look at Centene Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Centene Corporation, a multi-line managed care organization that offers Medicaid and Medicaid-related programs, has a positive long-term outlook according to Smartkarma Smart Scores. The company scored 4 out of 5 for value, indicating that it is undervalued and has potential for growth. However, its dividend score is lower at 1 out of 5, suggesting that it may not be a strong option for investors seeking regular dividend income.
Looking at other factors, Centene scored 3 out of 5 for both growth and resilience, meaning that it has moderate potential for growth and is moderately resilient in the face of market fluctuations. Its momentum score of 4 out of 5 indicates that the company has been performing well in recent months. Overall, Centene Corporation seems to have a promising future ahead, especially with its strong presence in multiple states and specialty services such as behavioral health and nurse triage.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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