NYSE$CNC

Centene Corp · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Centene reported mixed results with a net loss per share, but strong revenue growth driven by acquisitions and expansion.

Centene Corporation reported a net loss per share of $(0.02) for Q4 2020, while adjusted EPS was $0.46. Total revenues increased by 50% to $28.3 billion compared to Q4 2019, driven by the acquisition of WellCare and growth in Medicaid and Health Insurance Marketplace businesses. The company's managed care membership increased by 67% year-over-year to 25.5 million.

  • Total revenues increased 50% to $28.3 billion for the fourth quarter of 2020.
  • Managed care membership reached 25.5 million, a 67% increase over the prior year.
  • Diluted loss per share was $(0.02) for the fourth quarter of 2020, compared to diluted EPS of $0.49 for the fourth quarter of 2019.
  • Adjusted diluted EPS was $0.46 for the fourth quarter of 2020, compared to $0.73 for the fourth quarter of 2019.

Headline financials

Total Revenue

$28.3B

Previous: $18.9B+50.0%
EPS (adj)

$0.46

Previous: $0.73-37.0%
SG&A expense ratio

10.3%

Previous: 9.6%+7.3%
Adjusted SG&A ratio

9.7%

Previous: 9.5%+2.1%
Capital Expenditures

$206M

Previous: $200M+3.0%
Free Cash Flow

$2.78B

Previous: -$851M+426.1%
Net Income

-$12M

Previous: $202M-105.9%
Operating Income

$15M

Previous: $277M-94.6%
Gross Profit

$3.3B

Previous: $2.07B+59.3%
Cash & Equivalents

$10.8B

Previous: $12.1B-10.9%
Total Assets

$68.7B

Previous: $41B+67.6%
Stock-Based Comp

$63M

Previous: $71M-11.3%

Revenue & EPS history

Centene · Revenue · Quarterly

$28.3B

Q4 2020+50%vs Q4 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Centene · $27.7B total across 4 segments · Q4 2020

  • Medicaid
    $19.3B+50.7%
  • Commercial
    $4.18B+17.4%
  • Medicare
    $3.08B+120.6%
  • Other
    $1.16B+6.7%

Forward guidance

Centene provided full year 2021 guidance, including revenues between $116.1 billion and $118.1 billion, GAAP diluted EPS between $3.69 and $3.91, and adjusted diluted EPS between $5.00 and $5.30.

Tailwinds

  • Total revenues (in billions): $116.1 - $118.1
  • Adjusted diluted EPS: $5.00 - $5.30
  • HBR: 86.6% - 87.2%
  • Effective tax rate: 24.7% - 26.7%
  • Diluted shares outstanding (in millions): 590.1 - 593.1

Headwinds

  • GAAP diluted EPS: $3.69 - $3.91
  • SG&A expense ratio: 8.6% - 9.1%
  • Adjusted SG&A expense ratio: 8.3% - 8.8%
  • Incremental amortization expense related to PANTHERx
  • One-time charge related to a corporate restructuring

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 2020

Historical avgQ4 2020

+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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