CNC - Free Post Earnings Research Report: Centene's Revenue Jumped 13%; Adjusted EPS Soared 94%
Stock Monitor: Aetna Post Earnings Reporting
LONDON, UK / ACCESSWIRE / May 09, 2018 / If you want access to our free earnings report on Centene Corp. (NYSE: CNC), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=CNC. Centene reported its first quarter fiscal 2018 operating and financial results on April 24, 2018. The healthcare Company outperformed top- and bottom-line expectations and provided guidance for FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:
www.active-investors.com/registration-sg
Active-Investors.com is currently working on the research report for Aetna Inc. (NYSE: AET), which also belongs to the Healthcare sector as the Company Centene. Do not miss out and become a member today for free to access this upcoming report at:
www.active-investors.com/registration-sg/?symbol=AET
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Centene most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/?symbol=CNC
Earnings Highlights and Summary
For the first quarter of 2018, Centene's total revenues increased 13% to $13.194 billion from $11.72 billion in Q1 2017, primarily driven by growth in the Health Insurance Marketplace business in 2018, expansions and new programs in many of the states in 2017 and 2018, and the reinstatement of the health insurer fee in 2018. The Company's reported numbers topped analysts' estimates of $13.792 billion.
For Q1 2018, Centene's SG&A expense ratio was 10.5% compared to 9.8% for Q1 2017. The y-o-y increase was primarily a result of growth in the Health Insurance Marketplace business as well as increased acquisition related expenses. The Company's adjusted SG&A expense ratio was 10.3% for Q1 2018 compared to 9.3% for Q1 2017, with the increase primarily a result of growth in the Health Insurance Marketplace business, which operates at a higher SG&A expense ratio.
Centene's earnings were $340 million, or $1.91 per diluted share, for Q1 2018 compared to $139 million, or $0.79 per diluted share, for Q1 2017. The Company's adjusted earnings were $2.17 per diluted share for the reported quarter, up 94% compared to $1.12 per diluted share for the prior year's corresponding quarter. Centene's adjusted earnings for Q1 2018 were higher than its previous expectations by approximately $0.12 per diluted share due to the delay in the financing for the acquisition of New York State Catholic Health Plan, Inc. The Company's earnings came in ahead of Wall Street's estimates of $1.92 per share.
Operating Results
Centene reported Health benefits ratio (HBR) of 84.3% for Q1 2018 compared to 87.6% in Q1 2017. The y-o-y drop in HBR was primarily a result of membership growth in the Health Insurance Marketplace business, lower medical costs in the Company's Medicaid business, and the reinstatement of the health insurer fee in 2018. These decreases were partially offset by new or expanded health plans, which initially operate at a higher HBR, and increased flu-related costs.
As of March 31, 2018, Centene's managed care membership totaled 12.8 million, reflecting an increase of 684,000 members, or 6% over March 31, 2017.
Balance Sheet and Cash Flow
At March 31, 2018, Centene had cash, investments, and restricted deposits of $11.9 billion, including $452 million held by unregulated entities, while Medical claims liabilities totaled $4.8 billion.
In Q1 2018, Centene's days in claims payable was 43, which is an increase of two days over Q4 2017, due to growth in the Health Insurance Marketplace business, growth in new markets, and the timing of claims payments. Centene's total debt was $5.2 billion, which included $675 million of borrowings on the $1.5 billion revolving credit facility at quarter-end.
For Q1 2018, Centene's cash flow provided by operations was $1.8 billion compared to $1.2 billion in Q1 2017, driven by net earnings, an increase in medical claims liabilities, primarily resulting from growth in the Health Insurance Marketplace business, and an increase in other long-term liabilities, driven by the recognition of risk adjustment payable for Health Insurance Marketplace in 2018.
Outlook
For FY18, Centene is forecasting revenue in the range of $58.2 billion to $59.0 billion. The Company is expecting GAAP earnings in the band of $4.36 to $4.70 per diluted share and adjusted earnings in the range of $6.75 to $7.15 per diluted share. Centene is projecting HBR to be 85.9% to 86.4% for FY18.
Stock Performance Snapshot
May 08, 2018 - At Tuesday's closing bell, Centene's stock fell 1.80%, ending the trading session at $113.41.
Volume traded for the day: 1.80 million shares, which was above the 3-month average volume of 1.78 million shares.
Stock performance in the last month — up 6.41%; previous three-month period — up 9.40%; past twelve-month period — up 49.64%; and year-to-date — up 12.42%
After yesterday's close, Centene's market cap was at $19.44 billion.
Price to Earnings (P/E) ratio was at 22.22.
The stock is part of the Healthcare sector, categorized under the Health Care Plans industry.
Active-Investors:
Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
A-I has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: info@active-investors.com
Phone number: 73 29 92 6381
Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Active-Investors