Summary
Centene Corporation (CNC) reported its first quarter 2024 financial results, showcasing solid revenue growth driven by its Commercial Marketplace business. Total revenues reached $40.4 billion, a 4% increase year-over-year, primarily fueled by a 41% membership surge in its Ambetter Health product. Despite overall revenue growth, the company experienced a slight decrease in managed care membership and a nominal increase in the health benefits ratio (HBR) to 87.1%. Net earnings attributable to Centene Corporation were $1.16 billion, or $2.16 per diluted share, an increase from the prior year. The company also highlighted progress in divesting non-core international assets and expanding its Medicaid footprint in various states. Operationally, Centene is navigating the complex landscape of Medicaid redeterminations, which have impacted membership but are expected to see most states conclude by the second quarter of 2024. The company is strategically positioned to capture members transitioning from Medicaid to the Health Insurance Marketplace. While Medicare Advantage revenue saw a decline due to lower Star quality ratings, the Medicare Prescription Drug Plan (PDP) membership saw significant growth. Centene's proactive approach to market changes, ongoing value creation plan, and focus on operational efficiency provide a stable outlook despite regulatory shifts.
Financial Highlights
54 data points| Revenue | $40.41B |
| Cost of Revenue | $669.00M |
| Gross Profit | $4.74B |
| SG&A Expenses | $3.22B |
| Operating Expenses | $39.30B |
| Operating Income | $1.11B |
| Interest Expense | $178.00M |
| Net Income | $1.16B |
| EPS (Basic) | $2.17 |
| EPS (Diluted) | $2.16 |
| Shares Outstanding (Basic) | 535.11M |
| Shares Outstanding (Diluted) | 538.06M |
Key Highlights
- 1Total revenues grew 4% to $40.4 billion, driven by the Commercial Marketplace business, which saw 41% membership growth.
- 2Net earnings attributable to Centene Corporation were $1.16 billion ($2.16 per diluted share), an increase from $1.13 billion ($2.04 per diluted share) in Q1 2023.
- 3Health Benefits Ratio (HBR) slightly increased to 87.1% from 87.0% year-over-year, influenced by Medicare Advantage revenue impacts and higher Medicaid acuity.
- 4Managed care membership remained stable at 28.4 million, a slight decrease of 33,000 members year-over-year.
- 5The company completed divestitures of non-core international assets (Operose Health and Circle Health).
- 6Medicaid membership declined due to ongoing eligibility redeterminations, but the company is well-positioned to transition members to its Commercial Marketplace products.
- 7Medicare Prescription Drug Plan (PDP) membership increased by 44% year-over-year.