Centene Corp Stock Jumps Pre-market As Q3 Results Top Estimates: Retail Goes ‘Extremely Bullish’

Shares of healthcare firm Centene Corporation ($CNC) jumped over 10% in Friday’s pre-market session after reporting upbeat third-quarter earnings.

Centene’s revenue rose over 10%year-over-year (YoY) to $42.02 billion, compared to a Wall Street estimate of $38.02 billion. Adjusted earnings per share (EPS) came in at $1.62 surpassing an estimate of $1.41. Net earnings attributable to Centene Corporation soared over 52% YoY to $713 million.

The firm’s premium and services revenue rose 6% to $36.89 billion during the quarter, primarily led by Medicaid rate increases and membership growth in the Marketplace business due to strong product positioning as well as overall market growth.

CEO Sarah M. London said the firm remains confident in its full year outlook for adjusted diluted EPS of greater than $6.80 and is well positioned to capture the powerful, long-term growth opportunities it sees in government-sponsored healthcare.

For the full year 2024, the firm expects its total revenue to be in the range of $159 billion - $161 billion while premium and services revenue is expected to come in at $143.5 billion - $144.5 billion.

As of September end, the firm had cash, investments and restricted deposits of $36.7 billion and maintained $266 million of cash and cash equivalents in its unregulated entities.

Following the announcement, retail sentiment on Stocktwits jumped into the ‘extremely bullish’ territory (78/100) from ‘bearish’ a day ago.

One Stocktwits user believes the stock may hit the $75 mark once the market opens.

On a year-to-date basis, the stock has lost nearly 20% before considering Friday’s pre-market gains.

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