Centene Corp (CNC, Financial) announced its financial results for the third quarter ended September 30, 2023, on October 24, 2023. The company reported strong results, with an adjusted diluted EPS of $2.00, up over 53% from $1.30 in the third quarter of 2022. The company also increased its 2023 full year adjusted diluted EPS guidance by $0.15 to at least $6.60.
Financial Highlights
Centene Corp (CNC, Financial) reported total revenues of $38.04 billion, with premium and service revenues amounting to $34.97 billion. The company's Health benefits ratio stood at 87.0%, while the SG&A expense ratio was 8.7%. The adjusted SG&A expense ratio was slightly lower at 8.6%. The GAAP diluted EPS was $0.87, and the adjusted diluted EPS was $2.00. Total cash flow provided by operations was $1.02 billion.
Centene Corp (CNC, Financial) also reported a significant increase in its Marketplace membership, which exceeded 3.6 million members as of September 30, 2023, compared to 2.1 million members as of September 30, 2022. The company also executed $773 million of share repurchases in the third quarter of 2023 and year-to-date repurchases of $1.6 billion.
Company's Performance and Future Outlook
Centene Corp (CNC, Financial) demonstrated strong performance in the third quarter of 2023, driven by growth in the Marketplace business and successful execution against Value Creation initiatives. The company's CEO, Sarah M. London, stated,
Our strong third quarter results demonstrate the positive momentum Centene is generating as we prepare for 2024. We are increasing our full year 2023 adjusted diluted EPS guidance, reflecting year-over-year growth of more than 14%"
Looking ahead, the company is increasing its 2023 adjusted diluted EPS guidance by $0.15 to at least $6.60. The company is also increasing its 2023 premium and services revenues guidance range by $500 million.
Key Financial Tables
Centene Corp (CNC, Financial) reported a 4% increase in premium and service revenues to $35.0 billion from $33.7 billion in the comparable period of 2022. The Health benefits ratio (HBR) of 87.0% for the third quarter of 2023 represents a decrease from 88.3% in the comparable period in 2022. The SG&A expense ratio was 8.7% for the third quarter of 2023, compared to 8.4% in the third quarter of 2022. The adjusted SG&A expense ratio was 8.6% for the third quarter of 2023, compared to 8.3% in the third quarter of 2022.
As of September 30, 2023, the company had cash, investments, and restricted deposits of $37.0 billion and maintained $238 million of cash and cash equivalents in its unregulated entities. Medical claims liabilities totaled $17.1 billion. The company's days in claims payable was 53 days, which is an increase of one day as compared to the second quarter of 2023, and a decrease of one day as compared to the third quarter of 2022. Total debt was $18.0 billion.
