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Mar 31, 2022

Centene Q1 2022 Earnings Report

Centene's financial results for Q1 2022 were reported, showing diluted EPS of $1.44 and adjusted diluted EPS of $1.83.

Key Takeaways

Centene Corporation reported a strong first quarter in 2022, with total revenues of $37.2 billion, representing a 24% increase compared to the first quarter of 2021. The company's diluted EPS was $1.44, and the adjusted diluted EPS was $1.83. Centene has raised its total revenue and adjusted EPS guidance for the year.

Managed care membership reached 26.2 million, an 8% increase year-over-year.

Total revenues were $37.2 billion, a 24% increase year-over-year.

Diluted EPS was $1.44, compared to $1.19 in the first quarter of 2021.

Adjusted diluted EPS was $1.83, compared to $1.63 for the first quarter of 2021.

Total Revenue
$37.2B
Previous year: $30B
+24.0%
EPS
$1.83
Previous year: $1.63
+12.3%
SG&A Expense Ratio
8%
Previous year: 8.4%
-4.8%
Adjusted SG&A Expense Ratio
7.7%
Previous year: 8.1%
-4.9%
Days in Claims Payable
53
Gross Profit
$4.35B
Previous year: $3.62B
+20.4%
Cash and Equivalents
$11.2B
Previous year: $9.63B
+16.7%
Free Cash Flow
$909M
Previous year: -$144M
-731.3%
Total Assets
$82.9B
Previous year: $70.3B
+17.9%

Centene

Centene

Centene Revenue by Segment

Forward Guidance

The Company's guidance has been updated to reflect increased pass through revenue payments, increased state directed premium payments, increased premium revenue due to Medicare and Medicaid growth, and increased Adjusted EPS to $5.40-$5.55.

Positive Outlook

  • Increased pass through revenue payments recorded in the first quarter of 2022, resulting in additional premium tax revenue of approximately $1.5 billion.
  • Increased state directed premium payments recorded in the first quarter of 2022, resulting in additional premium revenue of approximately $500 million.
  • Increased premium revenue due to Medicare and Medicaid growth of approximately $2 billion.
  • Update to reflect the ongoing suspension of Medicaid eligibility redeterminations to August 1, 2022.
  • Increased Adjusted EPS to $5.40-$5.55.

Revenue & Expenses

Visualization of income flow from segment revenue to net income