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Mar 31, 2020
Centene Q1 2020 Earnings Report
Centene reported first quarter 2020 results with diluted EPS of $0.08 and Adjusted Diluted EPS of $0.86.
Key Takeaways
Centene Corporation reported a 41% increase in total revenues, reaching $26.0 billion, driven by the acquisition of WellCare, growth in the Health Insurance Marketplace, and expansions in various states. Diluted EPS was $0.08, and Adjusted Diluted EPS was $0.86, with both figures negatively impacted by lower investment income and incremental senior note interest expense.
Centene acquired WellCare Health Plans, Inc., valued at approximately $19.6 billion.
Managed care membership reached 23.8 million, a 61% increase year-over-year.
Total revenues grew by 41% to $26.0 billion compared to Q1 2019.
The company repurchased 9 million shares of Centene common stock for $500 million.
Revenue by Segment
Forward Guidance
The Company's annual guidance for 2020 is as follows:
Positive Outlook
- Total revenues are expected to be between $110.0 billion and $112.4 billion.
- GAAP diluted EPS is projected to be between $2.89 and $3.03.
- Adjusted Diluted EPS is anticipated to be between $4.56 and $4.76.
- Revenue growth
- Avoided / delayed costs
Challenges Ahead
- COVID-19 costs
- Risk adjustment initiatives
- Delay in WellCare synergies
- Lower investment income
- Higher interest expense
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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