Centene Jumps as Profit Relieves Investors Braced for Worst (2)

Centene Corp. shares jumped the most in four years after the health insurer’s third-quarter profits exceeded Wall Street’s expectations, a relief for investors braced for a tough quarter.

Adjusted earnings were $1.62 a share, Centene said Friday, above the $1.41 average of analysts’ estimates compiled by Bloomberg. Profit was lifted by a tax benefit originally expected in the fourth quarter.

The shares rose as much as 14% at the New York market open, the most intraday since March 2020, after losing 17% this year through Thursday’s close.

Higher costs in the US Medicaid safety-net program, where Centene operates private plans, ...