•
Dec 31, 2024

Centene Q4 2024 Earnings Report

Centene reported its Q4 2024 earnings, demonstrating operational improvements amidst industry challenges.

Key Takeaways

Centene Corporation announced its Q4 and full year 2024 financial results. The company reported Q4 total revenues of $40.805 billion and GAAP diluted EPS of $0.56. Despite industry headwinds, Centene demonstrated operational improvements and delivered on its financial commitments.

2024 adjusted diluted EPS of $7.17, up 7% from $6.68 in 2023.

Membership increases of 12% in Marketplace and 50% in Medicare PDP, compared to the fourth quarter of 2023.

Executed on capital deployment with $3.0 billion of share repurchases in 2024.

Increased 2025 premium and service revenues guidance by $4.0 billion driven by Medicaid revenue and better than expected membership performance during the annual enrollment period in Medicare Advantage and PDP.

Total Revenue
$40.8B
Previous year: $39.5B
+3.4%
EPS
$0.8
Previous year: $0.45
+77.8%
SG&A Expense Ratio
8.9%
Previous year: 9.9%
-10.1%
Adjusted SG&A Expense Ratio
8.9%
Previous year: 9.7%
-8.2%
Free Cash Flow
-$741M
Previous year: -$6M
+12250.0%
Total Assets
$82.4B
Previous year: $84.6B
-2.6%

Centene

Centene

Centene Revenue by Segment

Forward Guidance

The Company is increasing its 2025 premium and service revenues guidance range by $4.0 billion to a range of $158.0 billion to $160.0 billion. The Company reiterates its 2025 GAAP diluted EPS guidance floor of greater than $6.19 and its 2025 adjusted diluted EPS guidance floor of greater than $7.25.

Positive Outlook

  • outperformance in our PDP annual enrollment resulting in an additional $1.5 billion premium revenue
  • outperformance in our Medicare Advantage annual enrollment resulting in $1.0 billion of additional premium revenue
  • $1.5 billion of additional Medicaid premium revenue due to a program change adding behavioral health coverage in one of our state contracts
  • 2025 GAAP diluted EPS guidance floor of greater than $6.19
  • 2025 adjusted diluted EPS guidance floor of greater than $7.25