Health insurer Centene Corp (CNC.N) raised its 2024 adjusted profit forecast on Tuesday, bringing it broadly in line with Wall Street expectations.
In November, rival UnitedHealth Group (UNH.N) also forecast its 2024 profit in line with market estimates, indicating that medical costs are likely to remain elevated for the health insurance giant.
The healthcare sector has seen a recovery in demand this year, especially among older patients who started returning to clinics and hospitals for procedures they had delayed during the COVID-19 pandemic.
Centene expects 2024 medical loss ratio, or the percentage of premiums paid out for medical services, between 87.3% and 87.9%, compared with LSEG estimates of 87.81%.
The company now expects full-year adjusted profit of greater than $6.70 per share compared with its previous projection of greater than $6.60 per share.
Analysts on average expected 2024 profit at $6.77 per share, according to LSEG data.
The health insurer forecast 2024 revenue in the range of $142.5 billion to $145.5 billion, higher than analysts’ estimate of $142.1 billion.
The company’s board also authorized a $4 billion increase to stock repurchase program, which is an addition to about $1.2 billion remaining under the previously announced program.
Reporting by Khushi Mandowara in Bengaluru; Editing by Mrigank Dhaniwala
