Centene Corporation Reports Record-Breaking 3rd Quarter Earnings
April 26, 2023
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Non-GAAP EPS of $2.11 exceeded expectations by a penny, while revenue of $38.89B exceeded estimates by $2.8B. This marks the third consecutive quarter where Centene exceeded expectations. Centene Corporation ($NYSE:CNC) is a leading managed care organization that delivers health care services to millions of people through government sponsored, Medicaid and Medicare Advantage programs. In addition to health care services, Centene also provides specialty services related to behavioral health, long-term services and supports, in-home health care, pharmacy, and vision and dental benefits. Centene’s results were further bolstered by its acquisition of Fidelis Care, which added more than 1 million members to its managed care rolls.
The company has also announced plans to expand its presence in the Midwest and East Coast, with new operations in Michigan, New York, and Pennsylvania. Going forward, analysts expect Centene to continue to grow and provide meaningful value to shareholders.
Market Price
On Tuesday, CENTENE CORPORATION reported record-breaking 3rd quarter earnings, with its stock opening at $69.2 and closing at $69.3, up by 2.4% from previous closing price of 67.7. This impressive financial performance is attributed to strong growth in the company’s Medicaid and Medicare businesses, as well as its Affordable Care Act’s exchange plans. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Centene Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 146.25k | 1.48k | 1.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Centene Corporation. More…
| Operations | Investing | Financing |
| 9.38k | -773 | -3.88k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Centene Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 82.98k | 57.8k | 45.39 |
Key Ratios Snapshot
Some of the financial key ratios for Centene Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 21.2% | 30.6% | 2.0% |
| FCF Margin | ROE | ROA |
| 5.7% | 7.4% | 2.2% |
Analysis
At GoodWhale, we conducted an analysis of CENTENE CORPORATION’s financials to help investors better understand their risk profile. After our analysis, we determined that CENTENE CORPORATION is a high risk investment in terms of both financial and business aspects. In particular, we detected two major risk warnings in their income sheet and balance sheet. If you’d like to learn more about these risks and understand them better, please register with us to get access to the full report. More…
Peers
In the world of health insurance providers, Centene Corp faces some stiff competition. Some of its main competitors are UnitedHealth Group Inc, Pacific Health Care Organization Inc, and Humana Inc. All of these companies are vying for a piece of the pie in the ever-growing health insurance market.
– UnitedHealth Group Inc ($NYSE:UNH)
UnitedHealth Group Inc is an American for-profit managed health care company based in Minnetonka, Minnesota. It offers health care products and services through its subsidiaries, UnitedHealthcare and Optum. As of 2022, it has a market cap of 486.7B and a ROE of 21.75%.
The company’s main business is UnitedHealthcare, which provides health care coverage and benefits services to individuals, families, and businesses through plans sold by state and federal governments, employers, and directly to consumers through the Health Insurance Marketplace. Optum is the company’s health services business, which provides technology and information-enabled health services, including provider network management, care management, clinical decision support, and consumer engagement.
– Pacific Health Care Organization Inc ($OTCPK:PFHO)
As of 2022, Pacific Health Care Organization Inc has a market cap of 10.11M. The company has a return on equity of 1.33%. Pacific Health Care Organization Inc is a healthcare organization that provides services to patients in the Pacific region. The company offers a wide range of services, including primary care, mental health, and substance abuse services. The company also operates a network of clinics and hospitals in the Pacific region.
– Humana Inc ($NYSE:HUM)
Humana Inc. is a for-profit American health insurance company based in Louisville, Kentucky. As of 2019, Humana has had over 13 million customers in the United States. The company offers health, dental, and vision insurance plans, as well as Medicare and Medicaid plans. Humana also offers a wide range of supplemental plans, such as life insurance, long-term care insurance, and pet insurance.
Summary
Revenue came in at $38.89B, marking an impressive beat of $2.8B compared to the same quarter last year. The company’s revenue growth can be attributed to an increase in membership and premium rate increases across its government segments. Additionally, the company’s core businesses performed well and its balance sheet remains strong, with a solid cash position. Overall, Centene reported solid figures, indicating that its long-term fundamentals remain strong and it remains a good choice for investors looking for long-term capital appreciation.
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