CENTENE CORPORATION REPORTS THIRD QUARTER 2024 RESULTS

Core Insights - Centene Corporation reported a diluted EPS of $1.36 and an adjusted diluted EPS of $1.62 for Q3 2024, reaffirming its adjusted diluted EPS guidance floor for 2024 to be greater than $6.80 [1][10] - The company achieved total revenues of $42.0 billion, with premium and service revenues reaching $36.9 billion, marking a 6% increase from the previous year [1][8] - Membership in the Marketplace increased by 22%, while Medicare Prescription Drug Plans saw a 49% rise compared to Q3 2023 [1][5] Financial Performance - Total revenues for Q3 2024 were $42,023 million, with premium and service revenues at $36,899 million [1] - The health benefits ratio (HBR) was 89.2%, up from 87.0% in Q3 2023, primarily due to higher acuity in Medicaid [8] - Selling, general and administrative (SG&A) expense ratio was 8.3%, a decrease from 8.7% in the same quarter last year [8] Membership Growth - Total at-risk membership reached 25,893,000, compared to 25,196,700 in the previous year [5] - Traditional Medicaid membership decreased to 11,478,600 from 13,470,900, while Medicare PDP membership increased to 6,766,400 from 4,539,800 [5] Revenue Breakdown - Medicaid revenues were $21,316 million, a slight decrease from $21,619 million in Q3 2023 [6] - Commercial revenues increased by 35% to $8,693 million, while Medicare revenues rose by 4% to $5,643 million [6][8] Operational Highlights - The company executed $1.2 billion in share repurchases during Q3 2024, with an additional $380 million in October, totaling $2.4 billion for the year [1][9] - Centene's effective tax rate for Q3 2024 was 22.9%, down from 38.2% in Q3 2023 [8] Strategic Developments - Centene's CEO highlighted the company's diversified portfolio and operational efficiencies as key factors in navigating a dynamic landscape [2] - The company made significant progress in Medicare Star Ratings, with 46% of its Medicare Advantage membership enrolled in plans rated 3.5 stars or higher, up from 23% the previous year [2] Future Outlook - The company updated its 2024 GAAP diluted EPS guidance floor to greater than $5.92 while reaffirming its adjusted diluted EPS guidance floor of greater than $6.80 [10] - Total revenues for the full year 2024 are projected to be between $159.0 billion and $161.0 billion [11]