Centene Corporation (NYSE: CNC) stock is experiencing a significant rise on the US stock charts today following the announcement of its third-quarter 2024 financial results. As of the latest pre-market check, CNC shares were up 13.97%, reaching $70.23. This surge reflects the company’s ability to effectively navigate a complex and evolving healthcare environment while maintaining a diversified portfolio.
Centene Reported Strong Financial Performance and Key Metrics
Centene (CNC) reported an adjusted diluted earnings per share (EPS) of $1.62, with premium and service revenues totaling to $36.9 billion, reflecting the company’s continued growth. Membership in its Marketplace plans increased by 22%, while its Medicare Prescription Drug Plans saw a remarkable 49% growth.
Furthermore, Centene deployed $1.2 billion for share repurchases during the quarter, with an additional $380 million in October, bringing total buybacks for 2024 to $2.4 billion as of October.
CNC Reiterated Outlook and Long-Term Growth
Centene remains optimistic about its future performance, and reiterated its full-year estimate, predicting adjusted diluted EPS to surpass $6.80. Several reasons, such as recent accomplishments in gaining important contracts and increasing operating savings, support this optimism.
CNC is also well-positioned to capitalize on long-term growth opportunities within the government-sponsored healthcare sector, particularly as it continues to enhance its Medicare Stars ratings and capture new market segments.
Strategic Wins and Future Contracts
Centene has received Medicare Advantage Star Ratings from the Centers for Medicare and Medicaid Services (CMS), and over 46% of its members are now enrolled in plans with ratings of 3.5 stars or above.
The firm is appealing the CMS score of its TTY (Text-to-Voice) metric, which might further enhance its ratings, and is performing in line with expectations despite headwinds from industry-wide rating revisions.
Recent Milestones and Contract Awards
Health Net Community Solutions, a Centene subsidiary, was chosen in September to offer managed dental care services via California’s Medi-Cal program. Beginning in July 2025, this 54-month contract will encompass the counties of Sacramento and Los Angeles. Moreover, Centene (CNC) finalized the sale of its Collaborative Health Systems division, further refining its focus on core business operations.
