Tuesday, multiline healthcare company Centene Corp. (CNC) reported an increase in fourth quarter profit from a year ago on 19% higher premium and service revenues.
Fourth quarter net earnings attributable to Centene Corp. common shareholders were $23.72 million or $0.53 per share, compared to $21.42 million or $0.49 per share in the year ago quarter.
Centene's fourth-quarter profit from continuing operations increased slightly to $23.74 million from $23.27 million. Earnings per share of $0.53 was flat with the year ago quarter.
On average, 12 analysts polled by Thomson Reuters expected earnings of $0.52 for the quarter. Analysts' estimates typically exclude one-time items.
The company discontinued its operations for its New Jersey Health Plan, University Health Plans and loss from discontinued operations narrowed to $28,000 from $1.84 million.
Centene's total revenue increased to $1.092 billion from $902.75 million in the year ago quarter. Analysts expected fourth-quarter revenue of $1.10 billion for the quarter.
Revenues for the quarter were helped by a 19.6% year-over-year growth in premium and service revenue to $1.050 billion from $878.80 billion, primarily driven by membership growth in all states, premium rate increases and consolidation of Access and conversion of members to at-risk plan in Florida.
Consolidated G&A expense as a percent of premium and service revenues was 12.7%, a decrease from 13.8% in the prior-year period; the reduction reflecting improved leveraging of costs over a higher revenue base. Centene pharmacy and other medical expenses decreased even as product sales costs related to the flu increased by approximately $8.3 million.
For the full-year, Centene's net earnings increased to $138.1 million from $131.6 million last year. Profit from continuing operations increased to $86.1 million or $1.94 per share from $84.2 million or $1.90 per share in the prior year. Premium and service revenues increased 18.4% to $3.9 billion from $3.3 billion; pushing up total revenue to $4.102 billion from $3.364 billion. Analysts expected the company to report earnings of of $1.92 per share on revenue of $4.11 billion for the year.
Looking ahead, Centene has adjusted its full-year earnings guidance to $1.70 to $1.80 per share from the earlier guidance to reflect the issuance of 5.75 million common shares of stock related to its recently completed stock offering. It also expects to generate premium and service revenue between $4.350 billion and $4.450 billion for the year. Analysts currently expect Centene to report earnings of $1.85 per share on revenue of $4.54 billion.
CNC is currently trading at $17.86, down $0.22 or 1.22%, on the NYSE.
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