NYSE$CNC

Centene Corp · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Centene's financial results for Q1 2022 were reported, showing diluted EPS of $1.44 and adjusted diluted EPS of $1.83.

Centene Corporation reported a strong first quarter in 2022, with total revenues of $37.2 billion, representing a 24% increase compared to the first quarter of 2021. The company's diluted EPS was $1.44, and the adjusted diluted EPS was $1.83. Centene has raised its total revenue and adjusted EPS guidance for the year.

  • Managed care membership reached 26.2 million, an 8% increase year-over-year.
  • Total revenues were $37.2 billion, a 24% increase year-over-year.
  • Diluted EPS was $1.44, compared to $1.19 in the first quarter of 2021.
  • Adjusted diluted EPS was $1.83, compared to $1.63 for the first quarter of 2021.

Headline financials

Total Revenue

$37.2B

Previous: $30B+24.0%
EPS (adj)

$1.83

Previous: $1.63+12.3%
SG&A expense ratio

8.0%

Previous: 8.4%-4.8%
Adjusted SG&A ratio

7.7%

Previous: 8.1%-4.9%
Days in claims payable

53

No prior period
Capital Expenditures

-$242M

Previous: -$187M-29.4%
Free Cash Flow

$607M

Previous: $512M+18.6%
Net Income

$849M

Previous: $699M+21.5%
Operating Income

$1.25B

Previous: $1.05B+18.9%
Gross Profit

$35.2B

Previous: $28.9B+21.6%
Cash & Equivalents

$11.2B

Previous: $9.63B+16.7%
Total Assets

$82.9B

Previous: $70.3B+17.9%
Stock-Based Comp

$70M

Previous: $51M+37.3%

Revenue & EPS history

Centene · Revenue · Quarterly

$37.2B

Q1 2022+24%vs Q1 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Centene · $37.2B total across 4 segments · Q1 2022

  • Medicaid
    $24.1B+19.2%
  • Medicare
    $5.76B+53.2%
  • Commercial
    $4.13B+6.0%
  • Other
    $3.22B+107.1%

Forward guidance

The Company's guidance has been updated to reflect increased pass through revenue payments, increased state directed premium payments, increased premium revenue due to Medicare and Medicaid growth, and increased Adjusted EPS to $5.40-$5.55.

Tailwinds

  • Increased pass through revenue payments recorded in the first quarter of 2022, resulting in additional premium tax revenue of approximately $1.5 billion.
  • Increased state directed premium payments recorded in the first quarter of 2022, resulting in additional premium revenue of approximately $500 million.
  • Increased premium revenue due to Medicare and Medicaid growth of approximately $2 billion.
  • Update to reflect the ongoing suspension of Medicaid eligibility redeterminations to August 1, 2022.
  • Increased Adjusted EPS to $5.40-$5.55.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.4%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+1.9%

Avg return

30 days after

54%

37 / 68 earnings

Positive

+13.8%

Q1 2014

Best reaction

-10.4%

Q2 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.5%+22.6%+33.9%
Q4 2025-3.7%+1.3%+9.3%
Q3 2025+12.5%+3.9%+18.5%
Q1 2025-6.3%-2.8%-8.4%
Q4 2024-5.4%-9.1%-8.3%
Q3 2024+0.0%+0.3%-2.0%
Q2 2024+9.0%+14.1%+16.5%
Q1 2024-2.4%-4.5%-1.4%
Q4 2023+1.1%+4.4%+7.5%
Q3 2023-3.0%-4.8%+4.7%
Q2 2023-2.7%-3.7%-9.2%
Q1 2023-1.5%+1.9%-6.3%
Q4 2022+2.7%+2.4%-7.7%
Q3 2022+11.9%+13.2%+10.3%
Q2 2022+0.6%+1.1%+4.1%
Q1 2022-4.9%-5.1%-3.5%
Q4 2021+6.4%+3.1%+4.5%
Q3 2021+3.8%+4.8%+11.2%
Q2 2021-4.0%-5.6%-12.5%
Q1 2021-9.9%-6.5%+11.7%
Q4 2020+4.8%+1.6%+6.3%
Q3 2020-7.9%-11.0%-6.3%
Q2 2020-1.4%-3.0%-10.1%
Q1 2020-6.6%-8.3%-5.5%
Q4 2019+5.1%+0.4%-5.0%
Q3 2019+5.7%+5.4%+30.4%
Q2 2019+3.0%+2.4%-12.7%
Q1 2019+4.4%+9.5%+15.3%
Q4 2018-2.9%-3.2%-13.2%
Q3 2018-8.3%-9.9%-5.5%
Q2 2018-3.1%-3.0%+6.0%
Q1 2018-1.2%-0.4%+5.5%
Q4 2017+5.0%+2.3%+0.9%
Q3 2017-7.4%-3.7%-1.1%
Q2 2017-1.0%-1.8%+2.1%
Q1 2017+1.1%+3.3%+4.5%
Q4 2016+7.9%+9.1%+9.3%
Q3 2016+1.4%+0.1%-10.5%
Q2 2016-10.4%-6.3%-10.0%
Q1 2016+4.2%
Q4 2015+2.2%
Q3 2015+5.3%
Q2 2015+0.2%
Q1 2015-9.7%
Q4 2014+5.6%
Q3 2014+9.3%
Q2 2014+5.8%
Q1 2014+13.8%
Q4 2013+4.5%
Q3 2013-4.1%
Q2 2013+5.1%
Q1 2013+4.4%
Q4 2012+6.1%
Q3 2012+0.3%
Q2 2012+6.9%
Q1 2012-6.0%
Q4 2011-2.5%
Q3 2011+12.6%
Q2 2011+3.3%
Q1 2010+10.9%
Q1 2011+2.4%
Q4 2008-6.5%
Q4 2010-6.5%
Q3 2009-6.6%
Q2 2009-6.6%
Q3 2010-6.6%
Q4 2009-5.3%
Q2 2010-5.3%

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