Centene expected to confirm FY24 adjusted EPS view of ‘greater than $6.80’

In a regulatory filing, Centene stated, “The company will be presenting at the Bernstein 40th Annual Strategic Decisions Conference at 8:00 a.m. Eastern Daylight Time on Friday, May 31, 2024, and will be meeting with investors thereafter. The company expects to reaffirm the 2024 full year adjusted diluted earnings per share guidance of greater than $6.80 and full year consolidated health benefits ratio range of 87.3% to 87.9%, as well as provide intra-quarter insight including the following: Higher than expected claims receipts during April for both the first quarter of 2024 and April 2024 dates of service in the company’s Medicaid segment. The company’s early read of May claims receipts indicates continued medical costs higher than expected in Medicaid. Just under 50% of the company’s Medicaid rate changes are expected to occur between July 1 and October 1, 2024. Continued expected strong Marketplace 2024 performance, including expected favorable 2023 risk adjustment outperformance, in the second quarter of 2024. Strong consolidated premium and service revenue and investment income performance expected in the second quarter and for the remainder of 2024. Medicare segment is on track with expectations in April 2024. The company’s adjusted diluted EPS guidance now includes a fourth quarter 2024 projected premium deficiency reserve (related to 2025 Medicare Advantage bids) of approximately $125 million. The company will provide additional detail on its second quarter 2024 earnings call in late July.” FY24 EPS consensus is $6.85.