Government insurance giant Centene (CNC) - Get Centene Corporation Report  was down 0.4% in trading Tuesday after the St. Louis-based company reported strong top- and bottom-line first-quarter results while also raising its 2019 forecast. 

The company reported a 40% increase in revenue to $18.44 billion and earnings of $1.39 per share. Analysts were expecting revenue of $17.47 billion and  earnings of $1.34.

The company also raised its 2019 revenue forecast to between $72.8 billion and $73.6 billion from its previous estimate between $70.30 billion and $71.1 billion. It said that it expects to add an additional $1 billion in payments and $700 million from its Obamacare business, which is retaining more members than it previously expected. 

"Solid first-quarter results and increased 2019 guidance are indicative of the sustainability of our profitable growth trajectory. We continue to focus on the fundamentals of the business that will drive long-term shareholder value, irrespective of headline volatility," said CEO Michael F. Neidorff. 

TheStreet Recommends

The jump in the company's revenue was attributed to its purchase of Fidelis Care, which it purchased for $3.75 billion last July. Last month, Centene purchased rival WellCare Health for $15.27 billion in order to bolster its government-backed Medicare and Medicaid business.