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Sep 30, 2020
Centene Q3 2020 Earnings Report
Centene reported strong third quarter results, marked by significant revenue growth and strategic reinvestments.
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
Revenue by Segment
Medicaid Revenue
CapyFin.comCommercial Revenue
CapyFin.comMedicare Revenue
CapyFin.comOther Revenue
CapyFin.com 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