Centene Corporation released its third-quarter earnings on Tuesday, where it posted $584 million in profit.
The results fell short of Wall Street analysts’ expectations, according to Zacks Investment Research. Centene did beat the Street on revenues for the quarter, where it posted $32.4 billion.
Q3 2021 profit was up slightly from the prior-year quarter, where Centene earned $564 million. However, the company’s profitability through three quarters is significantly below 2020 figures. Through the first nine months of this year, Centene has raked in $748 million in profit, compared to $1.8 billion through the first three quarters of 2020.
“We are pleased with our third-quarter results, demonstrating the strength of our underlying businesses as we delivered strong membership growth and HBR was in line with our expectations. Our performance provides a strong foundation for our value creation plan, which we have initiated to fully leverage our size and scale going forward,” said Michael Neidorff, CEO of Centene, in a statement.
Highlights from the quarter include membership growth of 5% year over year, with an additional 1.4 million lives bringing Centene’s total to 26.5 million members.
Centene also announced plans to significantly expand its reach in Medicare Advantage, thanks to its acquisition of government insurance rival Wellcare, which closed in early 2020. The company also consolidated a number of disparate MA brands under the Wellcare name.
The insurer is increasing its revenue guidance for the year to reflect its acquisition of Circle Health, and now expects between between $125.2 billion and $126.4 billion in revenues. The still-pending Megellan acquisition is not considered in these calculations, Centene said.
Centene expects earnings per share of between $5.05 and $5.15 for the year.