Centene Q2 2023 Earnings Report
Key Takeaways
Centene Corporation announced its financial results for the second quarter ended June 30, 2023. The company reported adjusted diluted EPS of $2.10, up over 18% from the second quarter of 2022. Premium and service revenues were $34.8 billion. Centene increased its 2023 full year adjusted diluted EPS guidance by $0.05 to at least $6.45.
Adjusted diluted EPS of $2.10, up over 18% from $1.77 in the second quarter of 2022.
Premium and service revenues of $34.8 billion in the second quarter of 2023.
Medicaid redeterminations progressing as expected.
Increased 2023 full year adjusted diluted EPS guidance by $0.05 to at least $6.45; reiterates 2024 adjusted diluted EPS floor of greater than $6.60.
Centene
Centene
Centene Revenue by Segment
Forward Guidance
The Company is increasing its 2023 premium and services revenues guidance range by $1.8 billion to reflect an additional $1.0 billion of Medicaid and Commercial premiums as well as $800 million for Medicaid state-directed payments. The Company is also increasing its 2023 adjusted diluted EPS guidance by $0.05 to at least $6.45.
Positive Outlook
- Total revenues (in billions) $147.3 - $149.3
- Premium and service revenues (in billions) $137.0 - $139.0
- HBR 87.1% - 87.7%
- SG&A expense ratio 8.8% - 9.2%
- Adjusted SG&A expense ratio 8.7% - 9.1%
Challenges Ahead
- Effective tax rate 22.5% - 23.5%
- Adjusted effective tax rate 24.1% - 25.1%
- Diluted shares outstanding (in millions) 546.6 - 549.6
- GAAP diluted EPS at least $5.60
- Adjusted diluted EPS at least $6.45
Revenue & Expenses
Visualization of income flow from segment revenue to net income