Fri, Jul 26, 10:05 AM (43 days ago)
Centene Corporation's Q2 2024 financial performance highlights include: - **Revenue**: Total revenue increased by 6% year-over-year to $39.8 billion, driven by growth in the Marketplace segment and higher premium tax revenue. - **Membership**: Managed care membership increased slightly to 28.5 million, with significant growth in Marketplace membership offset by declines in Medicaid due to redeterminations. - **Earnings**: Net earnings attributable to Centene rose to $1.146 billion, with diluted EPS increasing to $2.16 from $1.92 in Q2 2023. Adjusted diluted EPS was $2.42. - **Margins**: The health benefits ratio (HBR) increased to 87.6%, reflecting higher acuity in Medicaid and Medicare Star rating impacts. The SG&A expense ratio improved to 8.0% from 8.7%. - **Cash Flow**: Operating activities generated $2.2 billion in cash, down from $6.8 billion in the prior year, influenced by pharmacy rebate remittance timing. - **Divestitures**: The company completed the divestitures of Operose Health and Circle Health, contributing to reduced revenues in the Other segment. - **Future Outlook**: Anticipated impacts include ongoing Medicaid redeterminations, Medicare Advantage bid strategies, and various state contract awards and renewals. Overall, Centene demonstrated robust revenue growth and improved operational efficiencies, despite challenges in Medicaid membership and divestitures.