Strong Obamacare business boosts Centene's quarterly results
* Raises FY adj. EPS forecast to $4.70-$5.06
* Q2 revenue rises 9.7 pct to $11.95 bln
* Shares rise as much as 4.2 pct (Adds conference call comments, details; updates shares)
By Divya Grover
July 25 (Reuters) - Centene Corp's quarterly profit and revenue topped estimates and the health insurer raised its full-year profit forecast as it benefits from a strong Obamacare business, in sharp contrast to other struggling large-cap insurers.
The company's results come a week after President Donald Trump and Republicans revised attempts to dismantle former President Barack Obama's Affordable Care Act (ACA), commonly known as Obamacare, collapsed in the U.S. Senate.
On Monday, President Trump made a last-ditch plea to U.S. Senate Republicans to "do the right thing" and fulfill campaign promises to repeal and replace Obamacare. The Senate will vote on Tuesday whether to open debate on an overhaul of the law.
While other insurers are exiting the individual insurance market amid concerns about the future of healthcare, Centene in June said it would enter into three new states and expand operations in six existing markets in 2018.
Health insurers, such as UnitedHealth Group Inc, Aetna Inc and Humana Inc, have exited most of the states where they sold plans.
Centene is the only large-cap insurer to show strong performance in its individual exchange efforts, Cantor Fitzgerald analysts said.
The company has the "credibility as well as experience to work with Congress on ways to address the challenges associated with the current law," Chief Executive Michael Neidorff said on a post-earnings call on Tuesday.
Centene will work closely with federal and state regulators and policymakers to collaborate on actions needed to stabilize the market, he added.
St. Louis, Missouri-based Centene, which primarily focuses on government-backed health insurance plans, had 12.2 million members in its individual plans as of June 30, an increase of about 7 percent.
Excluding items, Centene earned $1.59 per share in the second quarter ended June 30, which included a 17 cents net benefit related to risk adjustment under the ACA.
Centene's adjusted profit of $1.42 per share was above analysts' estimate of $1.32, according to Thomson Reuters I/B/E/S.
"We believe Centene is the best way to play the reform cycle with potential for multiple expansion now that Medicaid expansion and exchanges look more secure," Piper Jaffray analyst Sarah James said.
Revenue rose 9.7 percent to $11.95 billion, slightly ahead of analysts' average estimate of $11.69 billion.
Shares of Centene, which raised its full-year 2017 forecast to be between $4.70 per share and $5.06 per share, rose as much as 4.2 percent to $87.75 in morning trading on Tuesday. (Reporting by Divya Grover in Bengaluru; Editing by Martina D'Couto)
