Q2 2024 Centene Corp Earnings Call Transcript
Key Points
- Centene Corp (CNC) reported a stronger-than-expected adjusted diluted EPS of $2.42 for Q2 2024.
- The company's marketplace business, Ambetter Health, demonstrated strong performance and margin expansion.
- Centene Corp (CNC) secured significant contract wins in key geographies like Florida, Kansas, and Michigan.
- The company is actively addressing Medicaid rate and acuity mismatches, with positive rate adjustments expected in the second half of 2024.
- Centene Corp (CNC) increased its full-year premium and service revenue guidance by $5 billion, reflecting strong revenue performance.
- Medicaid redeterminations have caused significant membership shifts and increased acuity, leading to financial pressure.
- The company experienced a disconnect between Medicaid rates and member acuity, which negatively impacted Q2 results.
- Centene Corp (CNC) anticipates continued pressure on Medicaid HBR in the second half of the year.
- The company faces challenges in aligning Medicaid rates with the acuity of its members, requiring ongoing negotiations with state partners.
- Centene Corp (CNC) expects to shrink its Medicare Advantage business in 2025, focusing on long-term strategic alignment.
Good morning everyone and welcome to the Centene Corporation 2024 second quarter financial results conference call. All participants will be in a listen-only mode. (Operator Instructions) Please note, today's event is being recorded.
This time, Iâd like to turn the floor over to Jen Gilligan, Head of Investor Relations. Maâam, please go ahead. Jennifer Gilligan.
Thank you, Jamie and good morning everyone. Thank you for joining us on our second quarter 2024 earnings release conference call. Sarah London, Chief Executive Officer, Andrew Asher, Executive Vice President and Chief Financial Officer of Centene will host this morningâs call, which also can be accessed through our website at centence.com. Ken Fasola, Centene's President and Jon Dinesman our Head of External Affairs will also be available as participants during Q&A.
Any remarks that Centene may make about future expectations, plans and prospects constitute forward-looking statements for the purpose of the Safe
Access to All Earning Calls and Stock Analysis | |
30-Year Financial on one screen | |
All-in-one Stock Screener with unlimited filters | |
Customizable Stock Dashboard | |
Real Time Insider Trading Transactions | |
8,000+ Institutional investors’ 13F holdings | |
Powerful Excel Add-in and Google sheets Add-on | |
All data downloadable | |
Quick customer support | |
And much more... |