On February 4, 2025, Centene Corp (CNC, Financial) released its 8-K filing detailing its financial results for the fourth quarter and full year of 2024. Centene, a managed care organization specializing in government-sponsored healthcare plans, reported a robust performance, exceeding analyst expectations in several key areas.

Company Overview

Centene Corp (CNC, Financial) is a leading managed care organization that focuses on government-sponsored healthcare plans, including Medicaid, Medicare, and the individual exchanges. As of September, the company served 24 million medical members, primarily in Medicaid (60%), individual exchanges (20%), and Medicare Advantage (5%).

Performance Highlights

Centene Corp reported a full-year diluted EPS of $6.31 and an adjusted diluted EPS of $7.17, surpassing the annual estimated EPS of $5.94. The company's total revenues for 2024 reached $163.071 billion, exceeding the estimated revenue of $161.35791 billion. This performance is significant as it demonstrates Centene's ability to navigate industry challenges and capitalize on growth opportunities.

Financial Achievements and Strategic Initiatives

Centene's financial achievements in 2024 include a 7% increase in adjusted diluted EPS from the previous year and a 12% increase in Marketplace membership. The company also executed $3.0 billion in share repurchases, reflecting strong capital deployment. These achievements are crucial for Centene as they enhance shareholder value and strengthen the company's market position.

Income Statement and Key Metrics

For the fourth quarter of 2024, Centene reported total revenues of $40.805 billion, with premium and service revenues of $36.296 billion. The health benefits ratio (HBR) was 89.6%, slightly up from 89.5% in the previous year, indicating higher acuity in Medicaid. The SG&A expense ratio improved to 8.9% from 9.9% in the fourth quarter of 2023, driven by lower Medicare SG&A and divestitures.

Balance Sheet and Cash Flow

As of December 31, 2024, Centene held $35.5 billion in cash, investments, and restricted deposits. The company reported total debt of $18.5 billion and repurchased 42.0 million shares for $3.0 billion throughout the year. Cash flow provided by operations was $154 million, primarily driven by net earnings.

Analysis and Outlook

Centene's performance in 2024 highlights its resilience and strategic agility in a challenging healthcare landscape. The company's focus on expanding its Marketplace and Medicare PDP memberships, along with effective cost management, has positioned it well for future growth. Centene has increased its 2025 premium and service revenues guidance by $4.0 billion, reflecting confidence in continued membership growth and revenue expansion.

Despite a year of unprecedented industry headwinds, Centene demonstrated significant operational improvements, strengthened our talent bench, and delivered on our financial commitments in 2024," said Chief Executive Officer of Centene, Sarah M. London.

Centene's strategic initiatives, including partnerships and community engagement, further underscore its commitment to enhancing healthcare access and outcomes. As the company continues to leverage its diversified platform, it remains well-positioned to deliver value to its stakeholders and transform the health of the communities it serves.

Explore the complete 8-K earnings release (here) from Centene Corp for further details.