Once these most recent quarterly results are finalized, they will be run through TheStreet.com Ratings' model and our ratings will be adjusted accordingly. To keep up to date on all of our ratings, visit TheStreet.com Ratings Screener. Centene ( CNC) reported on April 28, 2009 that its Q1 FY09 earnings fell 28.0%, reflecting increased medical costs and a prior-year quarter gain. Net income attributable to shareholders increased to $18.46 million or $0.42 per share from $25.62 million or $0.57 per share in Q1 FY08. Net income from continuing operations was $18.91 million or $0.43 per share, which beat the most recent consensus estimate of $0.39 per share.

Revenue surged 19.7% to $932.44 million from $779.23 million, driven by membership growth. Premium revenue soared 20.1% to $885.01 million, while Premium tax grew 7.7% to $23.58 million. Service revenue spiked 16.2% to $23.85 million from $20.53 million a year ago.

Total membership increased 22.1% to 1,343,300 from 1,100,300, while revenue per member grew 2.3% to $220.29 from $215.39. Membership from Georgia, Indiana, and Ohio increased 2.3%, 11.0%, and 4.5%, respectively. Membership from Medicaid, CHIP & Foster Care, and ABD & Medicare spiked 14.8%, 24.5%, and 13.6%, respectively. In addition, the consolidated Health Benefits Ratio (HBR), which reflects medical costs as a percentage of premium revenues, advanced to 83.5% from 82.7% the prior year quarter due to overall increased premium yield, a moderating medical cost trend, and the Celtic acquisition.

Centene Corp. completed the previously announced acquisition of certain assets of Amerigroup Community Care of South Carolina. The Celtic unit was awarded a contract in Massachusetts to serve uninsured individuals through a joint venture with a leading local provider, Caritas Christi Health Care.

CNC expects its FY09 earnings per share to range between $1.84 and $1.94 on revenues of $3.65 billion to $3.78 billion.

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