Centene updates full-year guidance in Q1 earnings report

Centene Corp. (NYSE: CNC) on Friday reported a $1.16 billion profit in the first quarter, a 3% increase over the same period in 2023.

The Clayton-based corporation increased its full-year adjusted diluted earnings per share guidance floor by 10 cents to greater than $6.80.

“While there is still more work to do, we are pleased with the first-quarter results and will look to harness the positive momentum we are generating in our core businesses as we move through the balance of the year," Centene CEO Sarah London told financial analysts during an earnings call.

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Centene Corp.

Revenue totaled $40.4 billion in the first quarter, a 4% increase over the same period last year.

Total membership declined by 0.1% in the first quarter compared to the first three months of 2023. Medicaid membership dropped from 16.3 million to 13.3 million and Medicare declined from 1.3 million to 1.1 million.

The federal-state Medicaid program kept people continuously enrolled during the coronavirus epidemic, but that emergency authority expired last year and Centene along with other managed care companies have grappled with people losing coverage.

In a Friday filing with the Securities and Exchange Commission, Centene stated it is helping ensure that individuals confirm with state agencies their eligibility for Medicaid coverage or find other appropriate coverage.

"Our Ambetter Health product covers the majority of our Medicaid states, and we believe we are among the best positioned in the health care market to enroll those transitioning coverage through redeterminations," the filing stated.

Centene's enrollment in individual coverage under the Affordable Care Act marketplace increased from 3.1 million in the first quarter of 2023 to 4.3 million in the first three months of this year.

"This quarter is a good example of the benefit of a diversified business with multiple levers to drive results," said Centene Chief Financial Officer Andrew "Drew" Asher.

Also in its Friday earnings report, Centene reported that Florida earlier this month announced its intent to award contracts to five health plans, including Centene’s subsidiary, Sunshine Health, for the statewide Medicaid managed care program. Sunshine Health has served Florida members since 2009.

"Although the protest period is ongoing, Centene is well-positioned based on Florida's determination that Sunshine Health is among those who will provide best value to the state," London said.