Centene slashes full-year earnings forecast

ST. LOUIS (AP) — Insurer Centene Corp. slashed its full-year earnings forecast Monday, citing weak results from certain health plans it runs. The company also said it expects a second-quarter loss but anticipates a third-quarter profit.

Centene said that it now anticipates 2012 earnings of $1.45 to $1.65 per share, down from a range of $2.64 to $2.84 per share.

Analysts polled by FactSet predict full-year earnings of $2.68 per share.

Centene said that the revised guidance accounts for softer results in May for its Kentucky health plan and the Hidalgo service area in its Texas health plan and its Celtic individual health business.

The St. Louis company said it faced higher medical costs for Celtic. It also experienced increased medical costs in Kentucky in May due to a high number of non-inpatient claims and the retroactive assignment of members. Centene had a high number of certain non-inpatient claims in the Hidalgo area in Texas as well.

In April the company reported that its first-quarter profit edged up as revenue improved.