NYSE$CNC

Centene Corp · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Centene reported second quarter 2022 results with adjusted diluted EPS of $1.77 and a diluted loss per share of $(0.29), which includes a real estate charge.

Centene Corporation's second quarter results showed a 16% increase in total revenues driven by organic Medicaid and Medicare growth. The company increased its full-year adjusted diluted EPS guidance by $0.05 to a range of $5.60 to $5.75. The diluted loss per share was $(0.29), impacted by a real estate impairment charge. Execution of the Value Creation Plan continued through real estate optimization, divestitures, and share repurchases.

  • Total revenues increased 16% year-over-year, driven by organic Medicaid and Medicare growth.
  • Health benefits ratio (HBR) was 86.7%, largely driven by Marketplace performance.
  • The Value Creation Plan was executed through real estate optimization, divestitures, and share repurchases.
  • 2022 full-year adjusted diluted EPS guidance was increased by another $0.05 (to a range of $5.60 to $5.75).

Headline financials

Total Revenue

$35.9B

Previous: $31B+15.8%
EPS (adj)

$1.77

Previous: $1.25+41.6%
SG&A expense ratio

8.2%

Previous: 7.9%+3.8%
Adjusted SG&A ratio

8.2%

Previous: 7.7%+6.5%
Capital Expenditures

-$524M

Previous: -$437M-19.9%
Free Cash Flow

-$696M

Previous: -$972M+28.4%
Net Income

-$172M

Previous: -$535M+67.9%
Operating Income

-$129M

Previous: -$418M+69.1%
Gross Profit

$33.8B

Previous: $29.9B+13.1%
Cash & Equivalents

$13.4B

Previous: $11B+21.9%
Total Assets

$81.1B

Previous: $71.5B+13.3%
Stock-Based Comp

$59M

Previous: $36M+63.9%

Revenue & EPS history

Centene · Revenue · Quarterly

$35.9B

Q2 2022+15.8%vs Q2 2021
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Centene · $35.9B total across 4 segments · Q2 2022

  • Medicaid
    $22.5B+8.0%
  • Medicare
    $5.64B+42.7%
  • Commercial
    $4.56B+10.9%
  • Other
    $3.28B+98.5%

Forward guidance

The Company's guidance has been updated to reflect the sale of PANTHERx and corresponding gain along with real estate optimization impairment charges. The Company's guidance does not reflect the effects of the pending divestitures of Magellan Rx or its Spanish and Central European businesses.

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 2022

Historical avgQ2 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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