Centene Corp. reported unaudited consolidated earnings results for the first quarter ended March 31, 2018. For the quarter, the company reported total revenue of $13,194 million compared to $11,724 million a year ago. The increase over prior year was due to growth in the Health Insurance Marketplace business in 2018, expansions and new programs in many of states in 2017 and 2018, and the reinstatement of the health insurer fee in 2018. These increases were partially offset by lower revenues in California, which is a result of the removal of the in-home support services (IHSS) program from its Medicaid contract. Earnings from operations were $540 million compared to $240 million a year ago. Earnings from continuing operations before income tax expense were $513 million compared to $219 million a year ago. Net earnings were $338 million compared to $132 million a year ago. Net earnings attributable to company were $340 million or $1.91 per diluted share compared to $139 million or $0.79 per diluted share a year ago. Net cash provided by operating activities was $1,846 million compared to $1,248 million a year ago, increased due to net earnings, an increase in medical claims liabilities, primarily resulting from growth in the Health Insurance Marketplace business, and an increase in other long-term liabilities, driven by the recognition of risk adjustment payable for Health Insurance Marketplace in 2018. Cash provided by operations was also driven by increases in unearned revenue, due to the receipt of several April capitation payments received in March. Capital expenditures were $218 million compared to $83 million a year ago. Adjusted net earnings were $386 million against $197 million for the same period a year ago. Adjusted diluted EPS was $2.17, compared to $1.12 for the first quarter of 2017. Adjusted Diluted EPS for the first quarter of 2018 was higher than previous expectations by approximately $0.12 per diluted share due to the delay in the financing for the acquisition of New York State Catholic Health Plan Inc. d/b/a Fidelis Care New York (Fidelis Care) (Proposed Fidelis Acquisition).

For the full year of 2018, the company revised total revenue guidance to be in the range of $58.2 billion to $59.0 billion, GAAP diluted EPS to be in the range of $4.36 to 4.70, and adjusted diluted EPS to be in the range of $6.75 to $7.15 against previously expected total revenue guidance range of $60.6 billion to $61.4 billion, GAAP diluted EPS to be in the range of $5.91 to $6.25 and adjusted diluted EPS to be in the range of $6.95 to $7.35. Effective tax rate expected to be in the range of 34.0% to 36.0%.