:max_bytes(150000):strip_icc()/GettyImages-2221178961-f73f9c556da3492ab90d457953024016.jpg "Insurer Centene’s Unexpected Profit Sends Its Stock Soaring")
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Key Takeaways
- Centene shares soared Wednesday after the embattled health care services and insurance provider posted a surprise profit.
- A jump in demand for Medicare prescription drug plans and higher Medicaid premiums helped boost its results.
Centene (CNC) shares soared over 10% in recent trading after the health care services and insurance provider posted a surprise profit and lifted its outlook.
The company reported adjusted earnings per share of $0.50 for the third quarter, while analysts had anticipated a loss. Its revenue rose 18.2% year-over-year to $49.69 billion, also topping estimates compiled by Visible Alpha.
A jump in demand for Medicare prescription drug plans and higher Medicaid premiums helped boost Centene’s results.
Why This News Is Significant
The better-than-expected results could mark a turning point for Centene, which saw its stock plunge earlier this year amid worries about its plans offered on the Affordable Care Act exchanges.
Looking ahead, Centene said it now sees full-year adjusted EPS of at least $2, compared to its earlier estimate of $1.75.
CEO Sarah London said the results and higher outlook “demonstrate tangible progress against the near-term milestones we laid out for investors in July.”
Shares of Centene had plunged in July after the company withdrew its full-year outlook, citing worries about its plans offered on the Affordable Care Act exchanges. The stock has yet to recover to its levels before that drop. Even with today’s gains, shares of Centene have lost about 40% of their value in 2025.
