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Dec 31, 2019
Centene Q4 2019 Earnings Report
Centene's Q4 2019 financial results were announced, featuring revenue growth and strategic acquisitions.
Key Takeaways
Centene Corporation reported a 14% increase in total revenues for Q4 2019, reaching $18.9 billion. Diluted EPS was $0.49, and adjusted diluted EPS was $0.73. The company's performance was driven by growth in the Health Insurance Marketplace and expansions in several states. Centene also completed its acquisition of WellCare in January 2020, expanding its government-sponsored healthcare programs.
Total revenues for Q4 2019 increased by 14% to $18.9 billion.
Diluted EPS for Q4 2019 was $0.49, while adjusted diluted EPS was $0.73.
The health benefits ratio (HBR) for Q4 2019 was 88.4%, up from 86.8% in Q4 2018.
Centene completed the acquisition of WellCare in January 2020, creating a premier healthcare enterprise focused on government-sponsored healthcare programs.
Centene
Centene
Centene Revenue by Segment
Revenue by Segment
Medicaid Revenue
CapyFin.comCommercial Revenue
CapyFin.comMedicare Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Centene expects to provide consolidated 2020 annual guidance, including WellCare, on March 3, 2020, with a conference call on March 4, 2020. The company anticipates the WellCare acquisition to be no less than break-even accretion in the first full year and mid-to-upper single-digit accretion in the second full year. Excluding WellCare, the company's stand-alone 2020 guidance is unchanged.
Positive Outlook
- WellCare acquisition expected to be no less than break-even accretion in the first full year.
- Mid-to-upper single-digit accretion expected in the second full year post-WellCare acquisition.
- Stand-alone 2020 guidance unchanged from December investor day (excluding WellCare).
- Acquisition of WellCare brings a high-quality Medicare platform.
- The WellCare acquisition further extends Centene's robust Medicaid offerings.
Challenges Ahead
- Uncertainty as to expected financial performance post-WellCare acquisition.
- Risk of unexpected costs during WellCare integration.
- Potential disruption from the WellCare acquisition.
- Risk of not effectively managing expanded operations post-acquisition.
- Possibility that expected synergies from WellCare will not be realized.
Revenue & Expenses
Visualization of income flow from segment revenue to net income