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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.
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 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