Centene Lifts FY23 Adj. EPS View Above Market; Backs FY24 Forecast - Update

(RTTNews) - Managed care company Centene Corp. (CNC), while announcing weak profit and higher revenues in its third quarter, on Tuesday raised its earnings and revenue forecast for fiscal 2023, and maintained fiscal 2024 view.

For the year 2023, the company lifted adjusted earnings guidance by $0.15 per share to at least $6.60 per share.

Earnings on a reported basis is now expected to be at least $4.88.

On average, 18 analysts polled by Thomson Reuters expect earnings of $6.50 per share for the year. Analysts' estimates typically exclude special items.

The company also increased its 2023 premium and services revenues guidance range by $500 million.

For the year, the company now expects total revenues between $149 billion and $151 billion, and premium and service revenues between $137.5 billion and $139.5 billion.

The Street is looking for revenues of $148.5 billion for the year.

Further, the company reiterated 2024 adjusted earnings per share floor of greater than $6.60. Analysts are looking for earnings of $6.71 per share for the year.

Chief Executive Officer of Centene, Sarah London, said, "Our strong third quarter results demonstrate the positive momentum Centene is generating as we prepare for 2024. Marketplace growth, effective navigation of redeterminations year-to-date and successful execution against Value Creation initiatives together position us well to continue advancing our strategic priorities. We are increasing our full year 2023 adjusted diluted EPS guidance, reflecting year-over-year growth of more than 14%."

In pre-market activity on the NYSE, Centene shares were trading at $71.88, up 1.4 percent.