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Mar 31, 2023

Centene Q1 2023 Earnings Report

Centene reported strong first quarter results, driven by positive operational momentum and disciplined execution against its strategic framework.

Key Takeaways

Centene Corporation announced strong first quarter results with premium and service revenues of $35.0 billion. Diluted EPS was $2.04, and adjusted diluted EPS was $2.11. The company increased its 2023 full year adjusted EPS guidance to at least $6.40 and updated its 2024 adjusted EPS target to greater than $6.60.

Increased 2023 full year Adjusted EPS guidance to at least $6.40 driven by strong performance in its market leading Medicaid and Marketplace businesses.

Premium and service revenues of $35.0 billion in the first quarter of 2023.

Health benefits ratio of 87.0% in the first quarter of 2023, driven by continued disciplined Marketplace pricing and favorable Medicare performance.

Updates the 2024 Adjusted EPS target to greater than $6.60, reflecting an updated view of Medicaid redeterminations, Medicare bid strategy, and business investments, to be further discussed on the earnings call.

Total Revenue
$38.9B
Previous year: $37.2B
+4.6%
EPS
$2.11
Previous year: $1.83
+15.3%
SG&A Expense Ratio
8.6%
Previous year: 8%
+7.5%
Adjusted SG&A Expense Ratio
8.5%
Previous year: 7.7%
+10.4%
Gross Profit
$4.57B
Previous year: $4.35B
+5.1%
Cash and Equivalents
$15.9B
Previous year: $11.2B
+41.1%
Free Cash Flow
$4.04B
Previous year: $909M
+344.9%
Total Assets
$83B
Previous year: $82.9B
+0.1%

Centene

Centene

Centene Revenue by Segment

Forward Guidance

The Company's updated annual guidance for 2023 is as follows and will be discussed further on our conference call:

Revenue & Expenses

Visualization of income flow from segment revenue to net income