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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.
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 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
- impact of COVID-19 on economic conditions
- impact of COVID-19 on the healthcare industry
Revenue & Expenses
Visualization of income flow from segment revenue to net income