Centene Raises Full-Year Earnings Guidance After Posting Unexpected Profit In Q3

• The company raised its full-year adjusted earnings guidance to at least $2 per share, up from its previous guidance of at least $1.75.
• The company also said it conducted a quantitative impairment analysis in the third quarter to determine whether goodwill was impaired.
• The analysis was completed in October, and the company recorded a non-cash goodwill impairment of $6.7 billion, it said.
   

Centene Corporation (CNC) on Wednesday raised its full-year adjusted earnings (EPS) forecast after it posted an unexpected profit in the third quarter.

Analysts, on average, were expecting the insurer to post a loss of $0.18 per share in the third quarter, according to data from Fiscal AI. However, the company reported adjusted EPS of $0.50, sending shares rallying 10% in the premarket session.

The company subsequently raised its full-year adjusted earnings guidance to at least $2 per share, up from its previous guidance of at least $1.75.

Medical cost ratio, or the percentage of premiums used on medical care, in the three months through the end of September was 92.7%, up from the 89.2% reported in the corresponding period of 2024. The company pinned the increase to higher medical costs in the Medicaid business, among other factors. 

The company also said that it performed a quantitative impairment analysis during the third quarter to determine whether goodwill was impaired after the implementation of President Trump's tax and budget bill, as well as a decline in the company’s stock price.

The analysis was completed in October, and the company recorded a non-cash goodwill impairment of $6.7 billion, it said. 

Get updates to this developing story directly on Stocktwits.