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Sep 30, 2022

Centene Q3 2022 Earnings Report

Centene's Q3 2022 financial results were announced, featuring an 11% increase in total revenues and diluted EPS of $1.27.

Key Takeaways

Centene Corporation reported strong third-quarter results, with total revenues up 11% year-over-year, driven by organic Medicaid and Medicare growth. The company raised its full-year adjusted diluted EPS guidance for the fourth time in 2022. The selection of a new PBM partner was a key milestone in the Value Creation Plan.

Total revenues increased by 11% compared to the third quarter of 2021, driven by organic Medicaid and Medicare growth.

The health benefits ratio (HBR) was 88.3%, supported by strong Medicare results and consistent performance from Medicaid and Commercial segments.

The Value Creation Plan is progressing, with margin improvements, capital deployment initiatives, and the award of a new PBM contract.

Full-year adjusted diluted EPS guidance was raised for the fourth time in 2022, reaching a range of $5.65 to $5.75.

Total Revenue
$35.9B
Previous year: $32.4B
+10.7%
EPS
$1.3
Previous year: $1.26
+3.2%
SG&A Expense Ratio
8.4%
Previous year: 8.8%
-4.5%
Adjusted SG&A Expense Ratio
8.3%
Previous year: 8.6%
-3.5%
Days in Claims Payable
54
Previous year: 51
+5.9%
Gross Profit
$3.97B
Previous year: $3.66B
+8.6%
Cash and Equivalents
$15B
Previous year: $13.4B
+11.7%
Free Cash Flow
$3.09B
Previous year: $1.58B
+95.6%
Total Assets
$81.2B
Previous year: $77.7B
+4.4%

Centene

Centene

Centene Revenue by Segment

Forward Guidance

The Company's guidance has been updated to increase the bottom of the adjusted EPS range by $0.05. In addition, the guidance metrics also now include the third quarter impairment of assets associated with the pending divestiture of the Spanish and Central European businesses.

Revenue & Expenses

Visualization of income flow from segment revenue to net income