Centene’s stock shoots up after profit and revenue beat, raised outlook
Shares of Centene Corp. CNC, -0.25% shot up 6.1% in premarket trade Tuesday after the health-care services company reported first-quarter profit and revenue that beat expectations and raised its full-year outlook. Net income rose to $522 million, or $1.24 a share, from $340 million, or 96 cents a share, in the year-ago period. Excluding non-recurring items, adjusted EPS was $1.39, above the FactSet consensus of $1.35. Total revenue rose 40% to $18.44 billion, beating the FactSet consensus of $17.46 billion, as Medicaid revenue jumped 54% to $12.61 billion, Medicare revenue increased 19% to $1.38 billion and commercial revenue rose 19% to $3.65 billion. For 2019, the company raised its adjusted EPS guidance to $4.24 to $4.44 from $4.11 to $4.31 and its revenue outlook to $72.8 billion to $73.6 billion from $70.3 billion to $71.1 billion. The stock, which closed at a 17-month low last Wednesday amid a broad selloff in the health care sector, has tumbled 23.4% over the past three months through Monday, while the SPDR Health Care Select Sector ETF XLV, +0.06% has lost 4.0% and the S&P 500 SPX, +0.10% has gained 10.2%.
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