Reuters: Global Markets: Centene profit misses estimates as costs rise

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Centene profit misses estimates as costs rise Apr 24th 2012, 11:52 Tue Apr 24, 2012 7:52am EDT (Reuters) - Health insurer Centene Corp (CNC.N) posted a quarterly profit that fell short of analysts' expectations as increased claims expenses outpaced the growth in premium income. The company's results contrasted those of competitors UnitedHealth Group Inc (UNH.N) and Amerigroup Corp (AGP.N), which topped Wall Street estimates last week. Centene's health benefits ratio, a measure of medical expenses expressed as a percentage of premium revenue, rose to 88.2 percent in the quarter, from 84.9 percent a year ago. Premium and service revenue rose 41 percent to $1.7 billion. For the first quarter, net income from continuing operations rose marginally to about $24 million, or 45 cents a share, from $23.7 million, or 46 cents a share, a year ago. Analysts on an average had expected the company to earn 48 cents a share on revenue of $1.65 billion. However, Centene, which provides Medicaid and Medicaid-related health plan coverage to individuals through government-subsidized programs, raised its 2012 forecast to $2.64 to $2.84 per share, up from the $2.60 to $2.80 per share range it had forecast earlier. Revenue is expected to come in between $7.70 billion and$8.10 billion. Analysts, on an average, are expecting earnings of $2.75 a share on revenue of $7.57 billion, according to Thomson Reuters I/B/E/S. Shares of the St Louis, Missouri-based company, which has a market capitalization of about $2.29 billion, closed at $44.86 on Monday on the New York Stock Exchange. (Reporting by Balaji Sridharan in Bangalore; Editing by Roshni Menon) Link this Share this Digg this Email Reprints

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