WCG - Here's Why Centene Jumped 22.7% in October
Shares of Centene (NYSE: CNC) climbed 22.7% higher in October, according to data provided by S&P Global Market Intelligence, boosted by the health insurer's strong third-quarter results.
Revenue was up 17% year over year, thanks to growth in Centene's health insurance marketplace business and new Medicaid contracts and programs. The third-quarter number also benefited from the recent acquisition of Ribera Salud in Spain.
Adjusted earnings clocked in at $0.96 per share, up just 8% year over year, as the health benefit ratio (HBR) jumped 190 basis points to 88.2%. The HBR is medical costs paid by Centene expressed as a percentage of premiums taken in by the company. Investors can think of HBR kind of like the gross margin of health insurers.