Loading...
•
Dec 31, 2020
Centene Q4 2020 Earnings Report
Centene reported mixed results with a net loss per share, but strong revenue growth driven by acquisitions and expansion.
Key Takeaways
Centene Corporation reported a net loss per share of $(0.02) for Q4 2020, while adjusted EPS was $0.46. Total revenues increased by 50% to $28.3 billion compared to Q4 2019, driven by the acquisition of WellCare and growth in Medicaid and Health Insurance Marketplace businesses. The company's managed care membership increased by 67% year-over-year to 25.5 million.
Total revenues increased 50% to $28.3 billion for the fourth quarter of 2020.
Managed care membership reached 25.5 million, a 67% increase over the prior year.
Diluted loss per share was $(0.02) for the fourth quarter of 2020, compared to diluted EPS of $0.49 for the fourth quarter of 2019.
Adjusted diluted EPS was $0.46 for the fourth quarter of 2020, compared to $0.73 for the fourth quarter of 2019.
Revenue by Segment
Forward Guidance
Centene provided full year 2021 guidance, including revenues between $116.1 billion and $118.1 billion, GAAP diluted EPS between $3.69 and $3.91, and adjusted diluted EPS between $5.00 and $5.30.
Positive Outlook
- Total revenues (in billions): $116.1 - $118.1
- Adjusted diluted EPS: $5.00 - $5.30
- HBR: 86.6% - 87.2%
- Effective tax rate: 24.7% - 26.7%
- Diluted shares outstanding (in millions): 590.1 - 593.1
Challenges Ahead
- GAAP diluted EPS: $3.69 - $3.91
- SG&A expense ratio: 8.6% - 9.1%
- Adjusted SG&A expense ratio: 8.3% - 8.8%
- Incremental amortization expense related to PANTHERx
- One-time charge related to a corporate restructuring
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...