Centene Q3 2020 Earnings Report
Key Takeaways
Centene Corporation reported a 53% increase in total revenues to $29.1 billion for the third quarter of 2020, driven by the WellCare acquisition and expansions. GAAP diluted EPS was $0.97, and adjusted diluted EPS was $1.26. The company is reinvesting a one-time risk corridor settlement into growth initiatives.
Managed care membership reached 25.2 million, a 65% increase year-over-year.
Total revenues grew by 53% to $29.1 billion compared to Q3 2019.
Health benefits ratio (HBR) was 86.4%, a decrease from 88.2% in Q3 2019.
Diluted EPS was $0.97, compared to $0.23 in the third quarter of 2019.
Centene
Centene
Centene Revenue by Segment
Forward Guidance
The Company's annual adjusted diluted EPS guidance has been increased by $0.12 to reflect the favorable tax settlement recorded in the third quarter.
Positive Outlook
- Total revenues (in billions) $109.8 - $111.4
- GAAP diluted EPS $3.22 - $3.32
- Adjusted diluted EPS $4.90 - $5.06
- Reflects tightening of guidance range.
- The Company's annual adjusted diluted EPS guidance has been increased by $0.12 to reflect the favorable tax settlement recorded in the third quarter.
Challenges Ahead
- Estimated amortization of acquired intangible assets of $0.93 to $0.95 per diluted share
- Acquisition related expenses of $0.68 to $0.72 per diluted share
- The gain on the sale of the Illinois health plan of approximately $0.10 per diluted share
- Debt extinguishment costs of approximately $0.07 per diluted share
- Non-cash asset impairment of $0.10 per diluted share
Revenue & Expenses
Visualization of income flow from segment revenue to net income