Health insurer Centene Corp. on Friday forecast 2021 adjusted profit that missed Wall Street estimates, after it said membership in its Obamacare business fell short of expectations, sending its shares 1.8% lower in premarket trading.
The company expects adjusted 2021 profit between $5 and $5.30 per share, missing estimates of $5.44 per share, according to IBES data from Refinitiv.
Total revenues are likely to be between $114.1 billion and $116.1 billion, Centene said, while it expected a health benefits ratio, which is the amount spent on medical claims compared to the income from premiums, of around 86.6% to 87.2%.
Last month, the company had warned of continuing challenges due to the COVID-19 pandemic, unlike some rivals, including Humana Inc., which sees a boost to its 2021 profit from strong growth in its Medicare Advantage health plans.Â
People are also reading…
The company has paused the expansion of its Clayton headquarters campus, delaying plans for a third office tower, hotel and auditorium, the Post-Dispatch reported this week. CEO Michael Neidorff previously warned he wouldn’t invest further in the region unless crime rates fall.
