NYSE$CNC

Centene Corp · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Centene reported strong first quarter results, driven by positive operational momentum and disciplined execution against its strategic framework.

Centene Corporation announced strong first quarter results with premium and service revenues of $35.0 billion. Diluted EPS was $2.04, and adjusted diluted EPS was $2.11. The company increased its 2023 full year adjusted EPS guidance to at least $6.40 and updated its 2024 adjusted EPS target to greater than $6.60.

  • Increased 2023 full year Adjusted EPS guidance to at least $6.40 driven by strong performance in its market leading Medicaid and Marketplace businesses.
  • Premium and service revenues of $35.0 billion in the first quarter of 2023.
  • Health benefits ratio of 87.0% in the first quarter of 2023, driven by continued disciplined Marketplace pricing and favorable Medicare performance.
  • Updates the 2024 Adjusted EPS target to greater than $6.60, reflecting an updated view of Medicaid redeterminations, Medicare bid strategy, and business investments, to be further discussed on the earnings call.

Headline financials

Total Revenue

$38.9B

Previous: $37.2B+4.6%
EPS (adj)

$2.11

Previous: $1.83+15.3%
SG&A expense ratio

8.6%

Previous: 8.0%+7.5%
Adjusted SG&A ratio

8.5%

Previous: 7.7%+10.4%
Capital Expenditures

-$225M

Previous: -$242M+7.0%
Free Cash Flow

$905M

Previous: $607M+49.1%
Net Income

$1.13B

Previous: $849M+33.1%
Operating Income

$1.22B

Previous: $1.25B-2.8%
Gross Profit

$4.65B

Previous: $35.2B-86.8%
Cash & Equivalents

$15.9B

Previous: $11.2B+41.1%
Total Assets

$83B

Previous: $82.9B+0.1%
Stock-Based Comp

$61M

Previous: $70M-12.9%

Revenue & EPS history

Centene · Revenue · Quarterly

$38.9B

Q1 2023+4.6%vs Q1 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Centene · $35B total across 4 segments · Q1 2023

  • Medicaid
    $22.2B-7.7%
  • Medicare
    $5.88B+2.1%
  • Commercial
    $5.25B+27.1%
  • Other
    $1.6B-50.4%

Forward guidance

The Company's updated annual guidance for 2023 is as follows and will be discussed further on our conference call:

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.4%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+1.9%

Avg return

30 days after

54%

37 / 68 earnings

Positive

+13.8%

Q1 2014

Best reaction

-10.4%

Q2 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.5%+22.6%+33.9%
Q4 2025-3.7%+1.3%+9.3%
Q3 2025+12.5%+3.9%+18.5%
Q1 2025-6.3%-2.8%-8.4%
Q4 2024-5.4%-9.1%-8.3%
Q3 2024+0.0%+0.3%-2.0%
Q2 2024+9.0%+14.1%+16.5%
Q1 2024-2.4%-4.5%-1.4%
Q4 2023+1.1%+4.4%+7.5%
Q3 2023-3.0%-4.8%+4.7%
Q2 2023-2.7%-3.7%-9.2%
Q1 2023-1.5%+1.9%-6.3%
Q4 2022+2.7%+2.4%-7.7%
Q3 2022+11.9%+13.2%+10.3%
Q2 2022+0.6%+1.1%+4.1%
Q1 2022-4.9%-5.1%-3.5%
Q4 2021+6.4%+3.1%+4.5%
Q3 2021+3.8%+4.8%+11.2%
Q2 2021-4.0%-5.6%-12.5%
Q1 2021-9.9%-6.5%+11.7%
Q4 2020+4.8%+1.6%+6.3%
Q3 2020-7.9%-11.0%-6.3%
Q2 2020-1.4%-3.0%-10.1%
Q1 2020-6.6%-8.3%-5.5%
Q4 2019+5.1%+0.4%-5.0%
Q3 2019+5.7%+5.4%+30.4%
Q2 2019+3.0%+2.4%-12.7%
Q1 2019+4.4%+9.5%+15.3%
Q4 2018-2.9%-3.2%-13.2%
Q3 2018-8.3%-9.9%-5.5%
Q2 2018-3.1%-3.0%+6.0%
Q1 2018-1.2%-0.4%+5.5%
Q4 2017+5.0%+2.3%+0.9%
Q3 2017-7.4%-3.7%-1.1%
Q2 2017-1.0%-1.8%+2.1%
Q1 2017+1.1%+3.3%+4.5%
Q4 2016+7.9%+9.1%+9.3%
Q3 2016+1.4%+0.1%-10.5%
Q2 2016-10.4%-6.3%-10.0%
Q1 2016+4.2%
Q4 2015+2.2%
Q3 2015+5.3%
Q2 2015+0.2%
Q1 2015-9.7%
Q4 2014+5.6%
Q3 2014+9.3%
Q2 2014+5.8%
Q1 2014+13.8%
Q4 2013+4.5%
Q3 2013-4.1%
Q2 2013+5.1%
Q1 2013+4.4%
Q4 2012+6.1%
Q3 2012+0.3%
Q2 2012+6.9%
Q1 2012-6.0%
Q4 2011-2.5%
Q3 2011+12.6%
Q2 2011+3.3%
Q1 2010+10.9%
Q1 2011+2.4%
Q4 2008-6.5%
Q4 2010-6.5%
Q3 2009-6.6%
Q2 2009-6.6%
Q3 2010-6.6%
Q4 2009-5.3%
Q2 2010-5.3%

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