Centene Corporation (NYSE:CNC) has reported Q4 adjusted EPS of $1.01, slightly beating the consensus estimate of $0.99.
- Sales increased 15% Y/Y to $32.57 billion, almost in line with the consensus of $32.50 billion.
- Health Benefits Ratio of 87.9% decreased from 88.4% a year ago, benefitting from reduced COVID-19 associated testing and treatment costs and lower retroactive state premium rate adjustments.
- Managed care membership reached 26.6 million, +4% Y/Y.
- Centene generated an operating cash flow of $675 million in Q4 and $4.2 billion for FY21, representing 3.1 times net earnings for FY21.
- The Cost of Service ratio was 86.0% compared to 88.5%, driven by the acquisition of the Circle Health business, which operates at a lower cost of service ratio.
- FY 2022 Guidance: Centene reaffirmed its FY22 sales of $135.9 billion - $137.9 billion, compared to the consensus of $136 billion.
- The Company expects adjusted EPS of $5.30 - $5.50, versus the consensus of $5.44.
- Price Action: CNC shares are trading 2.96% at $83.18 during the premarket session on the last check Tuesday.
