Centene (CNC) Q4 2023 earnings summary

Executive summary

• FY 2023 adjusted diluted EPS was $6.68, up over 15% from $5.78 in 2022 and slightly ahead of prior guidance; 2024 revenue guidance increased by $2.5B.

• Marketplace growth and Medicaid rate increases supported annual revenue growth, while Medicaid redeterminations, divestitures and the 2024 Medicare Advantage reserve affected results.

Financial highlights

• FY revenue rose 3% to $154.0B; premium and service revenue increased 3% to $140.1B.

• FY GAAP net earnings were $2.702B and diluted EPS was $4.95; adjusted net earnings were $3.646B and adjusted diluted EPS was $6.68.

• Q4 revenue was $39.5B; GAAP net earnings were $45M and diluted EPS was $0.08, versus a $213M net loss and $(0.38) diluted EPS in Q4 2022.

• Q4 adjusted diluted EPS was $0.45, versus $(0.86) in Q4 2022; FY adjusted EPS increased from $5.78 in 2022.

• FY operating income was $2.930B; Q4 operating loss was $194M.

Outlook and guidance

• 2024 premium and service revenue guidance increased by $2.5B to $134.5B–$137.5B, reflecting stronger-than-expected Marketplace enrollment.

• Reiterated 2024 adjusted diluted EPS guidance floor of greater than $6.70.