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Centene
🇺🇸 NYSE:CNC
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Jun 30, 2024

Centene Q2 2024 Earnings Report

Centene's financial results for the second quarter of 2024 were announced, featuring a diluted EPS of $2.16 and an adjusted diluted EPS of $2.42.

Key Takeaways

Centene Corporation reported a 3% increase in premium and service revenues, reaching $36.0 billion, and an adjusted diluted EPS of $2.42, a 15% increase from Q2 2023. The company reaffirms its 2024 adjusted diluted EPS guidance floor of greater than $6.80. While Medicaid faces challenges, overall performance remains on track.

Adjusted diluted EPS of $2.42, up 15% from $2.10 in the second quarter of 2023.

Premium and service revenues of $36.0 billion in the second quarter of 2024.

Membership increase of 34% in Marketplace, compared to the second quarter of 2023.

Reaffirms 2024 Adjusted Diluted EPS Guidance Floor of Greater Than $6.80

Total Revenue
$39.8B
Previous year: $37.6B
+5.9%
EPS
$2.42
Previous year: $2.1
+15.2%
SG&A Expense Ratio
8%
Previous year: 8.7%
-8.0%
Adjusted SG&A Expense Ratio
8%
Previous year: 8.6%
-7.0%
Days in Claims Payable
54
Previous year: 52
+3.8%
Gross Profit
$4.43B
Previous year: $7.38B
-40.0%
Cash and Equivalents
$17.6B
Previous year: $17.2B
+2.5%
Free Cash Flow
$1.99B
Previous year: $2.33B
-14.7%
Total Assets
$83.1B
Previous year: $82.9B
+0.3%

Centene

Centene

Centene Revenue by Segment

Forward Guidance

The Company reaffirms its 2024 GAAP diluted EPS guidance floor of greater than $5.94 and its 2024 adjusted diluted EPS guidance floor of greater than $6.80. The Company is increasing its 2024 premium and service revenues guidance range by $5.0 billion to a range of $141.0 billion to $143.0 billion to reflect an additional $2.0 billion Commercial premium revenue, $2.0 billion Medicare premium revenue and $1.0 billion Medicaid premium revenue. The Company's total revenue guidance has been updated to $155.0 billion to $157.0 billion. Additionally, the 2024 HBR is expected to be at the high end of the previous guidance range, approximately 87.9%.

Positive Outlook

  • Reaffirms 2024 GAAP diluted EPS guidance floor of greater than $5.94
  • Reaffirms 2024 adjusted diluted EPS guidance floor of greater than $6.80
  • Increases 2024 premium and service revenues guidance range by $5.0 billion to a range of $141.0 billion to $143.0 billion
  • Reflects an additional $2.0 billion Commercial premium revenue
  • Reflects an additional $2.0 billion Medicare premium revenue

Challenges Ahead

  • 2024 HBR is expected to be at the high end of the previous guidance range, approximately 87.9%.
  • Medicaid redeterminations winding down
  • Medicare Star rating impacts
  • Higher acuity in Medicaid as we progressed through the redetermination process
  • Continue to work with states to match rates with acuity

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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