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Mar 31, 2021
Centene Q1 2021 Earnings Report
Centene reported solid revenue and earnings growth in Q1 2021 and increased its full-year guidance.
Key Takeaways
Centene Corporation announced its financial results for the first quarter ended March 31, 2021, reporting diluted earnings per share (EPS) of $1.19 and adjusted diluted EPS of $1.63. The company is increasing its full-year guidance, driven by the positive first quarter momentum.
Managed care membership of 25.1 million, an increase of 1.3 million members, or 5%, compared to March 31, 2020.
Total revenues of $30.0 billion, representing 15% growth compared to the first quarter of 2020.
Diluted EPS of $1.19, compared to diluted EPS of $0.08 for the first quarter of 2020.
Adjusted diluted EPS of $1.63, compared to $0.86 for the first quarter of 2020.
Revenue by Segment
Forward Guidance
The Company's annual guidance for 2021 is as follows: Total revenues (in billions) $120.1 - $122.1, GAAP diluted EPS $3.68 - $3.90, Adjusted diluted EPS $5.05 - $5.35, HBR 87.1% - 87.7%, SG&A expense ratio 8.4% - 8.9%, Adjusted SG&A expense ratio 8.3% - 8.8%, Effective tax rate 24.7% - 26.7%, Diluted shares outstanding (in millions) 589.0 - 592.0.
Positive Outlook
- ongoing suspension of Medicaid eligibility redeterminations to August 1
- extensions of the California pharmacy services to July 1 and New York pharmacy services through 2022
- Marketplace special enrollment period
- recent Oklahoma contract awards
- Medicare membership, sequestration, and the fee schedule increase
Challenges Ahead
- updated expectations regarding state premium rate adjustments
- updated expectations regarding state risk sharing mechanisms
- impact of COVID-19 on global markets
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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