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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.
Centene
Centene
Centene Revenue by Segment
Revenue by Segment
Medicaid Revenue
CapyFin.comCommercial Revenue
CapyFin.comMedicare Revenue
CapyFin.comOther Revenue
CapyFin.com 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