MM Curator summary
Medicaid revenues were up 16% YOY for the latest reported period.
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Centene Corp. Tuesday posted better-than-expected profit and revenue growth for the first quarter, as stronger results from its Medicaid and Medicare businesses offset declining revenue from commercial programs.
The St. Louis-based healthcare company logged net earnings attributable to the company of $1.19 a share, up from 8 cents a share a year earlier. The total net earnings attributable to the company were $699 million, compared with $46 million in 2020’s first quarter.
Accounting for one-time items, Centene’s adjusted earnings were $1.63 a share. Analysts surveyed by FactSet had forecast an adjusted profit of $1.50 a share.
Centene’s revenue climbed to $29.98 billion from $26.03 billion in the year-ago period. Analysts were expecting revenue of $29.5 billion. Revenue from premiums rose to $26.93 billion from $23.21 billion.
Revenue from Medicaid programs rose 16% to $20.19 billion, while Medicare revenue grew 41% to $3.76 billion. Commercial revenue fell 5% to $3.9 billion.
Total membership grew 5% to 25.1 million.
Chief Executive Michael Neidorff said the company’s previously announced agreement to acquire Magellan Health in a $2.2 billion deal is on track to close in the second half of 2021.
Write to Matt Grossman at email@example.com