Centene (CNC) Tops Q2 EPS by 3c, Revenues Beat; Offers FY18 EPS Outlook

Centene (NYSE: CNC) reported Q2 EPS of $1.80, $0.03 better than the analyst estimate of $1.77. Revenue for the quarter came in at $14.2 billion versus the consensus estimate of $13.94 billion.

Michael F. Neidorff, Centene\'s Chairman and Chief Executive Officer, stated, "Centene\'s strong fundamentals will be enhanced by the strategic and financial benefits of our recently closed Fidelis Care acquisition."

Second Quarter Highlights

• June 30, 2018 managed care membership of 12.8 million, an increase of 584,700 members, or 5%, over June 30, 2017.
• Total revenues for the second quarter of 2018 of $14.2 billion, representing 19% growth, compared to the second quarter of 2017.
• Health benefits ratio (HBR) of 85.7% for the second quarter of 2018, compared to 86.3% in the second quarter of 2017.
• Selling, general and administrative (SG&A) expense ratio and Adjusted SG&A expense ratio of 9.6% for the second quarter of 2018, compared to 9.3% for the second quarter of 2017.
• Diluted EPS for the second quarter of 2018 of $1.50, compared to $1.44 for the second quarter of 2017.
• Adjusted Diluted EPS for the second quarter of 2018 of $1.80, compared to $1.59 for the second quarter of 2017.
• Operating cash flow of $(526) million for the second quarter of 2018, and $1.3 billion for the six months ended June 30, 2018. As expected and highlighted at our June Investor Day, the second quarter cash flow was negatively affected by the repayment of $630 million of Medicaid expansion rate overpayments in California, which was previously accrued.

GUIDANCE:

Centene sees FY2018 EPS of $6.80-$7.16, versus the consensus of $7.05.

For earnings history and earnings-related data on Centene (CNC) click here.

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