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Sep 30, 2021
Centene Q3 2021 Earnings Report
Centene's financial results for the third quarter ended September 30, 2021, were reported, with diluted EPS of $0.99 and adjusted diluted EPS of $1.26.
Key Takeaways
Centene Corporation reported strong third quarter results with total revenues of $32.4 billion, representing 11% growth compared to the third quarter of 2020, and a diluted EPS of $0.99 and adjusted diluted EPS of $1.26.
Managed care membership reached 26.5 million, a 5% increase year-over-year.
Total revenues grew by 11% to $32.4 billion compared to Q3 2020.
The health benefits ratio (HBR) was 88.1% for the third quarter of 2021.
Operating cash flow was $1.8 billion, 3.1 times net earnings for Q3 2021.
Revenue by Segment
Forward Guidance
The Company's revenue guidance has been increased to reflect the acquisition of Circle Health, which is expected to be neutral to adjusted EPS in the first six months of ownership, and approximately $500 million of additional pass through payments.
Positive Outlook
- Total revenues (in billions) between $125.2 and $126.4
- GAAP diluted EPS between $1.87 and $1.93
- Adjusted diluted EPS between $5.05 and $5.15
- HBR between 87.6% and 88.0%
- Diluted shares outstanding (in millions) between 589.0 and 592.0
Challenges Ahead
- SG&A expense ratio between 8.4% and 8.8%
- Adjusted SG&A expense ratio between 8.2% and 8.6%
- Effective tax rate between 29.9% and 30.9%
- Adjusted effective tax rate between 24.6% and 25.6%
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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