Centene Sees Lower Than Expected Enrollment Boost
Centene Corp. reported second-quarter earnings in line with its own projections and Wall Street consensus, but also enrolled fewer members than executives had expected. The firm touted revenue growth from its acquisition of WellCare Health Plans, Inc. and attributed strong revenues to decreased utilization related to COVID-19 shutdowns, though Centene said claims rebounded in June to more normal levels.
Centene’s adjusted earnings per share (EPS) was $2.40, which came close to what SVB Leerink analyst Stephen Tanal described as the Wall Street consensus of $2.42. The firm’s non-adjusted EPS increased by 79.5% compared with the second quarter of 2019, which is mainly attributable to the WellCare acquisition.