Centene, a St. Louis-based managed-healthcare provider, announced impressive financial performance for the third quarter. The company’s top line experienced significant growth due to higher premium revenues and an increase in managed-care membership.
Robust Profits and Earnings
Centene reported a profit of $469 million, or 87 cents a share, for the quarter. This is compared to $738 million, or $1.27 a share, in the same period last year. Adjusted earnings, after excluding one-time items, amounted to $2 a share, surpassing analysts’ expectations of $1.55 a share.
Strong Revenue Growth
The company’s revenue for the third quarter reached $38.04 billion, up from $35.87 billion in the year-ago period. This exceeded analyst forecasts of $36.2 billion. The increase in revenue was primarily driven by a 4% rise in premium and services revenue to $34.97 billion. Centene attributed this growth to the expansion of its marketplace business and favorable market conditions.
Improved Health Benefits Ratio and Membership Growth
Centene’s health benefits ratio for the quarter improved to 87% from 88.3% in the same period last year. Additionally, managed-care membership increased to 28 million compared to 26.8 million a year ago.
Centene’s strong financial results reflect its strategic focus on expanding its marketplace business and capitalizing on growth opportunities in the overall market. The company remains well-positioned for continued success.