Centene (CNC) Prelim. Q4, FY15 Results Top Views

Centene (NYSE: CNC) announced that it expects 2015 earnings per diluted share (excluding Health Net merger related costs) to exceed its previously announced range of $2.90 to $2.94. Preliminary unaudited financial information from continuing operations for the fourth quarter and full year 2015 is as follows:

*** The Street sees Q4 revenue of $6.1 billion and EPS of $0.83 and FY15 revenue of $22.6 billion and EPS of $2.92.

The Company also reaffirms its 2016 guidance that was previously announced at its Investor Day in New York on December 18, 2015. For 2016 guidance purposes, the Company is providing combined guidance for Centene and Health Net 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. The guidance amounts are subject to adjustment, dependent on the actual closing date and financing terms.

For its 2016 fiscal year, the Company expects the following results from continuing operations (assuming a February 1, 2016 closing date):

• 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.

On January 25, 2016, the Company announced an ongoing comprehensive internal search for six hard drives that are unaccounted for in its inventory of approximately 26,000 information technology (IT) devices. This incident resulted from an employee not following established procedures on storing IT hardware. While we cannot estimate the impact with certainty at this time, the Company does not expect the impact of the incident to have a material effect on its future growth opportunities, financial position, cash flow or results of operations.

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