The St. Louis-based insurer has added another well-performing quarter to a year defined by expanded business operations and an improved bottom line.
In addition to improved revenue performance, the insurer reported $548 million in positive total cash flows from operations after posting a negative cash flow of $526 million in Q2, and recorded a managed care membership of $14.4 million, an increase of 17% year-over-year.
This solid quarterly earnings report is the latest development in a strong year for Centene, in which the insurer expanded services to 20 states, including most notably New York. Earlier this year, Centene closed on a deal with the the Archdiocese of New York to purchase Fidelis Care for $3.75 billion.
By entering the Empire State market, Centene expects the move to produce more than $11 billion in revenue for the company.
“The company continues to execute on its growth strategy,” Michael Neidorff, CEO of Centene, said in a statement. “The operating metrics were strong, excluding some offsetting adjustments associated with expired contracts. Overall, we are very pleased with the results and have good momentum heading into the fourth quarter and 2019.”
Additional Centene Q3 earnings report highlights:
Centene’s adjusted diluted earnings per share (ESP) for Q2 totalled $1.79; compared to $1.35 EPS in Q3 2017.
The insurer’s Medicaid and Medicare revenues grew significantly year-over-year at 35% and 20%, respectively. Once again, though, commercial revenues led the way with 56% growth year-over-year.
Centene recorded a pre-tax expense of $30 million associated with a contribution to its charitable foundation as well as a pre-tax charge of $110 million for negotiated settlements and severance costs.
For complete financial information, review Centene’s filing with the Securities and Exchange Commission.