Centene’s Surprise Profit Sparks Stock Rally Amid Medicare and Medicaid Growth
Centene shares surged more than 10% after the healthcare insurer reported an unexpected third-quarter profit, defying analyst expectations of a loss. Adjusted earnings reached $0.50 per share, while revenue climbed 18.2% year-over-year to $49.69 billion, surpassing Visible Alpha estimates. The rebound was fueled by strong demand for Medicare prescription drug plans and higher Medicaid premiums.
The results mark a potential inflection point for Centene, which faced steep declines earlier this year due to Affordable Care Act exchange uncertainties. Management raised full-year adjusted EPS guidance to at least $2, up from $1.75, with CEO Sarah London citing "tangible progress" on operational milestones. The stock remains below July levels when the company withdrew its outlook amid ACA-related volatility.
