Centene Reports Q4 Profit Surge, Beats Estimates

Centene Corporation reported a strong fourth quarter, with earnings of $283 million, or $0.56 per share, up from $45 million or $0.08 per share a year earlier, surpassing Wall Street estimates of $0.49 per share. The company's revenue also rose to $40.81 billion, reflecting a 3.4% increase compared to the previous year, aided by growth in its commercial health insurance plans. Adjusted earnings, stripping out one-time items, came in at $0.80 per share, exceeding analysts' expectations. Despite challenges, including a decline in government-backed Medicaid membership, Centene has focused on growth in private plans and reported a medical loss ratio of 89.6%. Looking ahead, the company anticipates an adjusted EPS in 2025 of at least $7.25, although it faces potential regulatory scrutiny and rising medical costs. CEO Sarah M. London emphasized the operational improvements made despite industry headwinds.