Tuesday, health insurer Centene Corp. (CNC) reported an increase in profit from the year-ago period, essentially on higher premiums. The company has also increased its full year earning guidance in line with Wall Street expectations.
Centene reported a third quarter profit of $21.26 million or $0.48 per share, up from $18.24 million or $0.41 per share in the year-ago period.
Excluding its discontinued operation New Jersey health plan, the company's net income rose to $22.72 million or $0.51 per share from $18.09 million or $0.41 per share last year. On average, 12 analysts polled by Thomson Reuters expected earnings of $0.50 for the quarter. Analysts' estimates typically exclude one-time items.
The company's premium income advanced to $960 million from $817.74 million, boosting total revenues to $1.03 billion from $858.59 million in the year-ago period. The company's premium and service revenue of $987.3 million, represents a 18.1% year over year growth. Total operating expenses increased to $1.00 billion from $826.68 million due to higher costs associated with administering H1N1 vaccinations. Gneral and administrative expenses increased to $130.02 million from $118.62 million in the year-ago period.
Managed care at-risk membership registered an increase of 215,300 lives year-over-year to 1.38 million compared to the year-ago period, with additions from the Arizona and Florida markets. The company's health benefits ratio, the percentage of premium revenue spent on medical costs, rose slightly to 83.7% from 82.2%.
For the nine-month period, Centene's net income dropped to $59.95 million or $1.36 per share from $62.07 million or $1.39 per share in the year-ago period. Revenue increased to $3.01 billion from $2.46 billion a year ago.
The insurer raised its full year earnings guidance to $1.91 to $1.97 per share, compared with its previous range of $1.88 to $1.96 per share on revenues between $3.85 billion and $3.9 billion. Analysts currently expect the company to report full year earnings of $1.92 per share on revenue of $4.03 billion.
CNC is currently trading at $18.49, up $1.15, on the NYSE.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.