Centene lifts profit forecast on cost control benefits
CNC•CNC•CNC•CNC•Centene raised its 2026 adjusted profit forecast to more than $5.20 per share from more than $4.80, after third-quarter adjusted earnings of 58 cents per share beat analysts’ 10-cent estimate. It lowered its full-year medical cost ratio forecast to 90.4% to 91.1%.
Centene raised its 2026 adjusted profit forecast to more than $5.20 per share, up from its previous expectation of more than $4.80. Analysts had expected $4.88 per share. CEO Sarah M. London said core businesses had powered a faster recovery to the company’s earnings trajectory than anticipated.
Third-quarter adjusted profit was 58 cents per share, compared with analysts’ average estimate of 10 cents. Centene lowered its full-year medical cost ratio forecast to 90.4% to 91.1%, from 90.5% to 91.3%; its quarterly ratio was 92.7%, unchanged from a year earlier and below analysts’ 92.84% estimate. The company said quarterly medical costs benefited from improved pricing in its Obamacare plans and better performance in Medicare Advantage. Shares were down about 3% in premarket trading.
