NYSE$CNC

Centene Corp · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Centene reported solid second-quarter results with adjusted diluted EPS of $1.25 and total revenues of $31.0 billion.

Centene Corporation announced its financial results for the second quarter ended June 30, 2021, reporting a diluted loss per share of $(0.92) and adjusted diluted earnings per share (EPS) of $1.25. Total revenues for the quarter were $31.0 billion, representing a 12% increase compared to the second quarter of 2020.

  • Managed care membership reached 25.4 million, a 3% increase compared to June 30, 2020.
  • Total revenues increased by 12% to $31.0 billion compared to the second quarter of 2020.
  • Health benefits ratio (HBR) was 88.3% for the second quarter of 2021, compared to 82.1% in the second quarter of 2020.
  • Operating cash flow was $1.7 billion for the second quarter 2021.

Headline financials

Total Revenue

$31B

Previous: $27.7B+12.0%
EPS (adj)

$1.25

Previous: $2.40-47.9%
SG&A expense ratio

7.9%

No prior period
Adjusted SG&A ratio

7.7%

No prior period
Capital Expenditures

-$437M

Previous: -$412M-6.1%
Free Cash Flow

-$972M

Previous: $794M-222.4%
Net Income

-$535M

Previous: $1.21B-144.4%
Operating Income

-$418M

Previous: $2.02B-120.7%
Gross Profit

$29.9B

Previous: $26.9B+11.3%
Cash & Equivalents

$11B

Previous: $12.8B-13.9%
Total Assets

$71.5B

Previous: $68.3B+4.7%
Stock-Based Comp

$36M

Previous: $47M-23.4%

Revenue & EPS history

Centene · Revenue · Quarterly

$31B

Q2 2021+12%vs Q2 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Centene · $30.5B total across 4 segments · Q2 2021

  • Medicaid
    $20.8B+14.7%
  • Commercial
    $4.11B-0.6%
  • Medicare
    $3.95B+11.7%
  • Other
    $1.65B+33.9%

Forward guidance

The Company's updated guidance for full year 2021 includes total revenues between $123.3 billion and $125.3 billion, GAAP diluted EPS between $1.82 and $2.06, and adjusted diluted EPS between $5.05 and $5.35.

Tailwinds

  • Total revenues (in billions): $123.3 - $125.3
  • GAAP diluted EPS: $1.82 - $2.06
  • Adjusted diluted EPS: $5.05 - $5.35
  • HBR: 87.5% - 88.1%
  • Effective tax rate: 32.5% - 34.5%

Headwinds

  • SG&A expense ratio: 8.3% - 8.7%
  • Adjusted SG&A expense ratio: 8.0% - 8.4%
  • Adjusted effective tax rate: 24.3% - 26.3%
  • Diluted shares outstanding (in millions): 589.0 - 592.0
  • We have not included the pending Magellan acquisition, recently completed related financing, or the recent acquisition of the remaining interest of Circle Health, in our current guidance.

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 Q2 2021

Historical avgQ2 2021

+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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