Centene (CNC) Boosts FY15 Outlook; Guides FY16 Above Expectations
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EPS Growth %: -0.9%
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Discontinued operations, net of income tax (benefit) expense: -1M
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Centene Corporation (NYSE: CNC) announced today it increased its 2015 earnings guidance and announced 2016 financial guidance. The Company now expects 2015 earnings per diluted share of $2.90 to $2.94 (excluding Health Net merger related costs) and affirms its 2015 revenue guidance in the previously announced range for premium and service revenues of $21.0 billion to $21.3 billion.
*** The Street sees FY15 EPS of $2.88 and revenue of $22.6 billion.
For 2016 guidance purposes, the Company is providing combined guidance and has assumed the Health Net transaction closes on February 1, 2016. The Health Net transaction remains subject to regulatory approval and the Company continues to expect the transaction to close early in 2016. For its 2016 fiscal year, the Company expects the following results from continuing operations:
• Total revenues in the range of $41.2 billion to $42.0 billion.
• GAAP earnings per diluted share of approximately $2.85 to $3.15.
• Adjusted earnings per diluted share of approximately $4.10 to $4.40.
Adjusted earnings per diluted share excludes approximately $0.65 to $0.70 per diluted share of Health Net merger related expenses and total intangible amortization associated with acquisitions of $0.55 to $0.60 per diluted share.
*** The Street expects FY16 revenue of $26.1 billion and EPS of $3.34.
Full year 2015 earnings will be reported on February 9, 2016, at 6:00 AM, with a conference call at 8:30 AM (Eastern Time).
Investor Meeting
Centene Corporation will host an investor meeting today, including a question-and-answer session, to discuss the details of its guidance at the Pierre Hotel in New York City. The meeting will begin promptly at 8:30 AM (Eastern Time) and end at approximately 11:30 AM (Eastern Time). Investors and other interested parties who are unable to attend in person are invited to listen to the investor meeting via a live, audio webcast on the Company's website and view a copy of the investor presentation at www.centene.com, under the Investors section.
Non-GAAP Financial Presentation
The Company is providing certain non-GAAP financial measures in this release as the Company believes that these figures are helpful in allowing individuals to more accurately assess the ongoing nature of the Company's operations and measure the Company's performance more consistently. The Company uses the presented non-GAAP financial measures internally to allow management to focus on period-to-period changes in the Company's core business operations. Therefore, the Company believes that this information is meaningful in addition to the information contained in the GAAP presentation of financial information. The presentation of this additional non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.
The Company's 2015 guidance excludes merger related costs expected to be incurred in 2015 related to the Health Net transaction. These costs are estimated to be between $0.13 and $0.15 per diluted share for 2015. GAAP earnings per diluted share for 2015 are estimated to be $2.76 to $2.80.
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