(RTTNews) - Tuesday, health insurer Centene Corp. (CNC: News ) 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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by RTT Staff Writer

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