NYSE$CNC

Centene Corp · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Centene's Q3 2022 financial results were announced, featuring an 11% increase in total revenues and diluted EPS of $1.27.

Centene Corporation reported strong third-quarter results, with total revenues up 11% year-over-year, driven by organic Medicaid and Medicare growth. The company raised its full-year adjusted diluted EPS guidance for the fourth time in 2022. The selection of a new PBM partner was a key milestone in the Value Creation Plan.

  • Total revenues increased by 11% compared to the third quarter of 2021, driven by organic Medicaid and Medicare growth.
  • The health benefits ratio (HBR) was 88.3%, supported by strong Medicare results and consistent performance from Medicaid and Commercial segments.
  • The Value Creation Plan is progressing, with margin improvements, capital deployment initiatives, and the award of a new PBM contract.
  • Full-year adjusted diluted EPS guidance was raised for the fourth time in 2022, reaching a range of $5.65 to $5.75.

Headline financials

Total Revenue

$35.9B

Previous: $32.4B+10.7%
EPS (adj)

$1.30

Previous: $1.26+3.2%
SG&A expense ratio

8.4%

Previous: 8.8%-4.5%
Adjusted SG&A ratio

8.3%

Previous: 8.6%-3.5%
Days in claims payable

54

Previous: 51+5.9%
Capital Expenditures

-$771M

Previous: -$662M-16.5%
Free Cash Flow

-$33M

Previous: -$78M+57.7%
Net Income

$738M

Previous: $584M+26.4%
Operating Income

$476M

Previous: $545M-12.7%
Gross Profit

$34.3B

Previous: $31.1B+10.4%
Cash & Equivalents

$15B

Previous: $13.4B+11.7%
Total Assets

$81.2B

Previous: $77.7B+4.4%
Stock-Based Comp

$51M

Previous: $40M+27.5%

Revenue & EPS history

Centene · Revenue · Quarterly

$35.9B

Q3 2022+10.7%vs Q3 2021
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Centene · $35.9B total across 4 segments · Q3 2022

  • Medicaid
    $23.3B+7.7%
  • Medicare
    $5.64B+43.8%
  • Commercial
    $4.29B-2.1%
  • Other
    $2.64B+27.2%

Forward guidance

The Company's guidance has been updated to increase the bottom of the adjusted EPS range by $0.05. In addition, the guidance metrics also now include the third quarter impairment of assets associated with the pending divestiture of the Spanish and Central European businesses.

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 Q3 2022

Historical avgQ3 2022

+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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