Shares of Centene Corp. CNC, +4.78% rose 1.3% in premarket trading Friday, after the health care company provided a 2022 revenue outlook that was above expectations. The company also said it was evaluating strategic alternatives for its international business, as part of its plan to optimize its portfolio of businesses, and said it expects share repurchases to play “a more meaningful role” next year in terms of returning value to shareholders. The company said it expects 2022 revenue of $135.9 billion to $137.9 billion, above the FactSet consensus of $132.6 billion. Adjusted earnings per share is expected to be $5.30 to $5.50, surrounding the FactSet EPS consensus of $5.37. The company also expects a health benefits ratio of 87.6% to 88.2% and an effective tax rate of 25.5% to 26.5%. The stock has shot up 25.4% over the past three months through Thursday, while the SPDR Health Care Select Sector ETF XLV, +0.35% has edged up 0.7% and the S&P 500 SPX, +0.95% has gained4.7%.
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