Centene Corporation (NYSE: CNC), a Fortune 500 company and leader in healthcare services, has recently announced its financial results for the fourth quarter and the full year of 2023, marking significant achievements and setting a confident tone for 2024.
Centene Corporation Reports $39.46B in Revenue for Q4
In the last quarter of 2023, Centene Corporation reported robust revenues of $39.46 billion, with premium and service revenues at $35.34 billion. The health benefits ratio, a key measure of the company’s medical costs as a percentage of premium revenues, was recorded at 89.5%.
The selling, general, and administrative (SG&A) expense ratio, another critical metric indicating the efficiency of operations, was slightly higher at 9.9% on a GAAP basis and adjusted to 9.7%. Despite these figures, the adjusted diluted EPS for Q4 came in at $0.45, showcasing the company’s ability to manage costs and optimize operations effectively.
CNC Outperforms Expectations in Q4
When juxtaposed with market expectations, Centene’s performance in the latest quarter presents a mixed picture. The company’s earnings per share (EPS) of $0.45 slightly outperformed the anticipated $0.42, underscoring a prudent management approach and operational efficiency. However, the reported revenue of $39.46 billion also surpassed the expected $36.18 billion, highlighting Centene’s ability to generate higher revenue streams and maintain a strong competitive stance in the healthcare sector.
CNC Increases 2024 Guidance by $2.5 Billion
Looking ahead, Centene is optimistic about its future trajectory. The company has increased its 2024 premium and service revenues guidance by $2.5 billion, reflecting confidence in its growth strategy and market opportunities. The reiterated floor for 2024 adjusted diluted EPS of more than $6.70 signifies Centene’s belief in its operational strength and the effectiveness of its strategic initiatives. These forward-looking statements suggest a focus on expanding core businesses, leveraging strategic partnerships, and continuing to drive cost-efficiency across operations.
The post Centene (CNC) Raises 2024 Guidance by $2.5 Billion, Signaling Strong Growth Outlook appeared first on Tokenist.