Centene Backs FY24 Adj. EPS View Below Market, Lifts Revenue Forecast Above Street; Stock Climbs

rttnews
2024.10.25 10:51

Centene Corp. (CNC) reported higher Q3 results but trimmed its FY24 earnings outlook, maintaining adjusted EPS guidance below market expectations. The company raised its annual revenue forecast above analyst estimates. In pre-market trading, Centene shares rose approximately 12%. For FY24, reported EPS is now expected to exceed $0.92, down from $0.94, while adjusted EPS remains above $0.80. Total revenue guidance was updated to $130-$132 billion, up from $126-$128 billion, with Q3 profit increasing to $1.36 per share, surpassing expectations.

Healthcare enterprise Centene Corp. (CNC), while reporting higher third-quarter results, on Friday trimmed its fiscal 2024 earnings view on a reported basis, but maintained adjusted earnings outlook below market. Further, the company lifted annual revenue view, abouve the Street estimate.

In pre-market activity on the NYSE, Centene shares were gaining around 12 percent to trade at $69.00.

For fiscal 2024, the company now expects earnings per share on a reported basis of greater than $5.92, compared to previously expected greater than $5.94.

Further, adjusted earnings per share for the year is still expected in the floor of greater than $6.80.

Analysts on average expect the company to earn $6.82 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Further, the company has updated 2024 total revenue guidance to $159 billion to $161 billion from previous estimate of $155.0 billion to $157.0 billion, while analysts estimate $155.59 billion.

Premium and service revenues are now projected to be $143.5 billion to $144.5 billion, higher than previous outlook of $141.0 billion to $143.0 billion

In its third quarter, Centene profit increased from last year and beat the Street estimates. The company's bottom line came in at $713 million, or $1.36 per share, compared to $469 million, or $0.87 per share last year.

Adjusted earnings were $1.62 per share for the period. Analysts had expected the company to earn $1.38 per share.

The company's revenue for the quarter rose 10.5 percent to $42.023 billion from $38.042 billion last year.

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