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Dec 31, 2022
Centene Q4 2022 Earnings Report
Centene reported mixed results with revenue increase offset by a net loss, driven by divestiture-related charges and impairments. The company focused on portfolio optimization and capital deployment through share repurchases.
Key Takeaways
Centene Corporation reported a 9% increase in total revenues for Q4 2022, reaching $35.6 billion, driven by Medicaid and Medicare growth, and the acquisition of Magellan. However, the company experienced a GAAP diluted loss per share of $(0.38), while adjusted diluted EPS was $0.86. The company executed $1.4 billion in share repurchases during the quarter and increased its 2023 premium and service revenues guidance by $2.0 billion.
Total revenues increased by 9% to $35.6 billion, driven by Medicaid and Medicare growth and the Magellan acquisition.
GAAP diluted loss per share was $(0.38), while adjusted diluted EPS was $0.86.
The company completed five divestitures in the past three months: Magellan Rx, Magellan Specialty Health, Ribera Salud, Centurion, and HealthSmart.
Centene executed $1.4 billion of share repurchases in Q4 and increased its 2023 premium and service revenues guidance by $2.0 billion.
Centene
Centene
Centene Revenue by Segment
Revenue by Segment
Medicaid Revenue
CapyFin.comCommercial Revenue
CapyFin.comMedicare Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Centene is increasing its 2023 premium and service revenues guidance range by $2.0 billion and reiterates its 2023 adjusted diluted EPS guidance of $6.25 to $6.40.
Positive Outlook
- An additional $1.5 billion of Medicaid premium revenue reflecting a higher starting point in 2023 and an additional two months until redeterminations recommence on April 1, 2023.
- An additional $3.0 billion of Commercial premium revenue from a stronger than expected Marketplace open enrollment.
- The company reiterates its 2023 adjusted diluted EPS guidance of $6.25 to $6.40.
Challenges Ahead
- Lower Medicare revenue of $500 million reflecting softer than expected 2023 annual enrollment.
- Decreased revenues of $2.0 billion reflecting the divestitures of Magellan Specialty Health, Centurion, and HealthSmart, which were completed in January 2023 and were previously included in our 2023 guidance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income