- Ahead of its investor day, Centene Corp (NYSE:CNC) increased its Premium and Service Revenues FY22 guidance range by $2.0 billion to $134.3 billion - $136.3 billion.
- The company also increased adjusted EPS guidance by $0.15 to $5.55 - $5.70 vs. the consensus of $5.49.
- The company's 2022 financial guidance has been updated to reflect increased Medicaid premium revenue, mirroring the assumed ongoing suspension of Medicaid eligibility redeterminations to November 1 and good Q2 performance to date, primarily in Marketplace.
- Related: Centene Offloads Two Pharmacy Businesses For $2.8B.
- Following a strategic review of the company's real estate portfolio, it has initiated a reduction of its real estate footprint.
- As a result, Centene expects to record estimated pre-tax costs, including impairments of approximately $750 million - $800 million attributable to leased space and $750 million - $850 million attributable to owned real estate.
- The costs are expected to be recorded primarily during Q2 and Q3. The company expects to decrease its leased real estate expense by an annualized run rate of $180 million to $200 million.
- Centene has also authorized a $3.0 billion increase to the company's existing stock repurchase program and a new $1.0 billion debt repurchase program.
- Price Action: CNC shares are up 0.16% at $76.80 during the market session on the last check Friday.
