NYSE$CNC
Centene Corp · Q4 2019 earnings
Q4 2019 earnings · · Investor relations
Briefing
Centene's Q4 2019 financial results were announced, featuring revenue growth and strategic acquisitions.
Centene Corporation reported a 14% increase in total revenues for Q4 2019, reaching $18.9 billion. Diluted EPS was $0.49, and adjusted diluted EPS was $0.73. The company's performance was driven by growth in the Health Insurance Marketplace and expansions in several states. Centene also completed its acquisition of WellCare in January 2020, expanding its government-sponsored healthcare programs.
- Total revenues for Q4 2019 increased by 14% to $18.9 billion.
- Diluted EPS for Q4 2019 was $0.49, while adjusted diluted EPS was $0.73.
- The health benefits ratio (HBR) for Q4 2019 was 88.4%, up from 86.8% in Q4 2018.
- Centene completed the acquisition of WellCare in January 2020, creating a premier healthcare enterprise focused on government-sponsored healthcare programs.
Headline financials
Revenue & EPS history
Centene · Revenue · Quarterly
$18.9B
Revenue by segment
Centene · $18.9B total across 4 segments · Q4 2019
- Medicaid$12.8B—68.0%
- Commercial$3.56B—18.9%
- Medicare$1.4B—7.4%
- Other$1.09B—5.8%
Forward guidance
Centene expects to provide consolidated 2020 annual guidance, including WellCare, on March 3, 2020, with a conference call on March 4, 2020. The company anticipates the WellCare acquisition to be no less than break-even accretion in the first full year and mid-to-upper single-digit accretion in the second full year. Excluding WellCare, the company's stand-alone 2020 guidance is unchanged.
Tailwinds
- WellCare acquisition expected to be no less than break-even accretion in the first full year.
- Mid-to-upper single-digit accretion expected in the second full year post-WellCare acquisition.
- Stand-alone 2020 guidance unchanged from December investor day (excluding WellCare).
- Acquisition of WellCare brings a high-quality Medicare platform.
- The WellCare acquisition further extends Centene's robust Medicaid offerings.
Headwinds
- Uncertainty as to expected financial performance post-WellCare acquisition.
- Risk of unexpected costs during WellCare integration.
- Potential disruption from the WellCare acquisition.
- Risk of not effectively managing expanded operations post-acquisition.
- Possibility that expected synergies from WellCare will not be realized.
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 Q4 2019
+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
| Quarter | Report date | Reaction (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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