By Centene, a leading managed-healthcare provider, has announced a profitable fourth quarter with significant revenue growth and an increase in membership.
Financial Performance
Centene reported a profit of $45 million, or eight cents per share, marking a significant improvement compared to the loss of $213 million, or 38 cents per share, during the same quarter last year. The loss in the previous year was primarily due to $295 million in impairment charges from divestitures.
Adjusted earnings, excluding one-time items, amounted to 45 cents per share, surpassing analysts’ expectations of 42 cents per share. Additionally, Centene’s revenue surged to $39.46 billion, exceeding analyst estimates of $36.16 billion.
Membership Growth
Total membership for Centene rose to 27.5 million from 27.1 million in the corresponding quarter of the previous year. Although there was a decrease in Medicaid members due to redeterminations, the company experienced a substantial increase in commercial members.
Revenue Breakdown
Centene’s premium and services revenue grew by 5% to reach $35.3 billion. This positive growth was supported by $250 million of premium deficiency revenue related to its 2024 Medicare Advantage business. The health benefits ratio for the company improved to 89.5% from 88.7% as a result.
Future Outlook
With the stronger-than-anticipated marketplace open enrollment, Centene has raised its full-year premium and service revenues guidance by $2.5 billion. The revised range now stands at $134.5 billion to $137.5 billion.
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