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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.
Revenue by Segment
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.
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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