Shares in Centene were up premarket Friday after the company beat Wall Street analysts' expectations on both profit and revenue for the third quarter.
Centene reported $713 million in profit for the quarter alongside $42 billion in revenue. By comparison, the company reported $469 million in profits and $38 billion in revenue in the prior-year quarter.
Through the first nine months of the year, Centene has brought in $122.3 billion in revenue, growing from $114.5 billion at this time last year. It has also recorded $3 billion in profit through three quarters, up from $2.7 billion.
As of noon ET, shares in Centene were trading up by nearly 9%.
Centene CEO Sarah London said in a press release that the insurer was buoyed by improvements in the Medicare Advantage (MA) star ratings, wins in the bid process and "ongoing operational efficiencies."
"Our diversified portfolio has allowed us to successfully navigate a dynamic landscape in the quarter," she said.
Centene expects to bring in at least $6.80 in earnings per share for the year as well as between $159 billion and $161 billion in revenue for 2024.
In the earnings report, Centene highlighted Medicaid contract wins in several states including Iowa, Pennsylvania and Florida. It also noted that based on the latest ratings data, 46% of its members were in Medicare plans with at least 3.5 stars, up from 23% last year.
Total membership was 28.6 million as of the third quarter, according to the earnings report, up from about 27.9 million. It was down, however, by about 2 million members in Medicaid, with those losses offset in other segments such as MA.