- Centene Corporation (NYSE:CNC) has reported a Q1 FY22 adjusted EPS of $1.83, compared to $1.63 a year ago, beating the consensus estimate of $1.68.
- Sales increased 24% Y/Y to $37.18 billion, beating the consensus of $34.50 billion.
- Health Benefits Ratio of 87.3%, up from 86.8% a year ago, due to a return to more normalized traditional Medicaid medical utilization.
- Managed care membership reached 26.2 million, +8% Y/Y.
- Centene generated an operating cash flow of $1.2 billion, representing 1.4x net earnings for Q1 FY22.
- The Cost of Service ratio was 84.8% compared to 88.7%, driven by the acquisition of the Circle Health business, which operates at a lower cost of service ratio.
- FY 2022 Guidance: Centene raised its FY22 sales outlook to $139.9 billion - $141.9 billion versus the prior guidance of $135.9 billion - $137.9 billion and the consensus of $137.03 billion.
- It expects an adjusted EPS of $5.40 - $5.55 compared to the previous $5.30 - $5.50 and the consensus of $5.34.
- Price Action: CNC shares are down 0.42% at $84.50 during the premarket session on the last check Tuesday.
