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Centene's (CNC) Q3 Earnings Improve Y/Y on High Revenues
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Centene Corporation (CNC - Free Report) reported third-quarter 2020 adjusted earnings per share of $1.26, beating the Zacks Consensus Estimate by 31.3%. The bottom line also soared by the same percentage year over year on the back of solid revenues.
For the third quarter, total revenues surged 53% to $29.1 billion from the year-ago period, primarily aided by the WellCare buyout, growth in Health Insurance Marketplace business, expansions and new programs across many states as well as the reinstatement of the health insurer fee in 2020 along with the ACA risk corridor receivable settlement. However, this upside was offset by the Illinois health plan divestiture.
Meanwhile, the top line surpassed the consensus mark by 2.5%.
Centene Corporation Price, Consensus and EPS Surprise
As of Sep 30, 2020, managed care membership came in at 25.2 million, up 65% year over year.
Health Benefit Ratio (HBR) for the reported quarter was 86.4% compared with 88.2% in the prior-year period. This decrease can be attributed to the prevalent COVID-19 pandemic as well as the ACA risk corridor receivable settlement.
Adjusted Selling, General & Administrative (SG&A) expense ratio was 8.9% in the quarter compared with 8.8% in the same period last year.
Financial Update
As of Sep 30, 2020, the company's cash and cash equivalents totaled $12.2 billion, up 0.6% from the figure at 2019 end.
As of Sep 30, 2020, total assets were up 66.8% to $68.4 billion from the level at 2019 end.
Centene’s long-term debt summed $16.7 billion, up 22.7% from the figure at 2019 end.
Net cash provided by operating activities as of Sep 30, 2020 was $2.5 billion compared with net cash provided by operating activities of $2.1 billion a year ago.
2020 Outlook
The company now expects revenues in the range of $109.8-$111.4 billion, the upper limit tightened from the previous anticipation of $109-$111.4 billion.
Adjusted EPS is anticipated between $4.90 and $5.06, up from the previous projection of $4.76-$4.96.
Some stocks worth considering from the medical sector with the perfect mix of elements to surpass estimates in the next releases are as follows:
Select Medical Holdings Corporation (SEM - Free Report) has an Earnings ESP of +10.00% and a Zacks Rank of 2, currently. The company is scheduled to release third-quarter earnings on Oct 29. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Bausch Health Cos Inc. (BHC - Free Report) is set to report third-quarter earnings on Nov 3. The stock is currently a #3 Ranked player and has an Earnings ESP of +5.80%.
Canopy Growth Corporation (CGC - Free Report) is set to report third-quarter earnings on Nov 12. The stock presently has a Zacks Rank #3 and an Earnings ESP of +7.55%.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.5% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
Centene's (CNC) Q3 Earnings Improve Y/Y on High Revenues
Centene Corporation (CNC - Free Report) reported third-quarter 2020 adjusted earnings per share of $1.26, beating the Zacks Consensus Estimate by 31.3%. The bottom line also soared by the same percentage year over year on the back of solid revenues.
For the third quarter, total revenues surged 53% to $29.1 billion from the year-ago period, primarily aided by the WellCare buyout, growth in Health Insurance Marketplace business, expansions and new programs across many states as well as the reinstatement of the health insurer fee in 2020 along with the ACA risk corridor receivable settlement. However, this upside was offset by the Illinois health plan divestiture.
Meanwhile, the top line surpassed the consensus mark by 2.5%.
Centene Corporation Price, Consensus and EPS Surprise
Centene Corporation price-consensus-eps-surprise-chart | Centene Corporation Quote
Quarterly Operational Update
As of Sep 30, 2020, managed care membership came in at 25.2 million, up 65% year over year.
Health Benefit Ratio (HBR) for the reported quarter was 86.4% compared with 88.2% in the prior-year period. This decrease can be attributed to the prevalent COVID-19 pandemic as well as the ACA risk corridor receivable settlement.
Adjusted Selling, General & Administrative (SG&A) expense ratio was 8.9% in the quarter compared with 8.8% in the same period last year.
Financial Update
As of Sep 30, 2020, the company's cash and cash equivalents totaled $12.2 billion, up 0.6% from the figure at 2019 end.
As of Sep 30, 2020, total assets were up 66.8% to $68.4 billion from the level at 2019 end.
Centene’s long-term debt summed $16.7 billion, up 22.7% from the figure at 2019 end.
Net cash provided by operating activities as of Sep 30, 2020 was $2.5 billion compared with net cash provided by operating activities of $2.1 billion a year ago.
2020 Outlook
The company now expects revenues in the range of $109.8-$111.4 billion, the upper limit tightened from the previous anticipation of $109-$111.4 billion.
Adjusted EPS is anticipated between $4.90 and $5.06, up from the previous projection of $4.76-$4.96.
Zacks Rank
Centene carries a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases From Medical Sector
Some stocks worth considering from the medical sector with the perfect mix of elements to surpass estimates in the next releases are as follows:
Select Medical Holdings Corporation (SEM - Free Report) has an Earnings ESP of +10.00% and a Zacks Rank of 2, currently. The company is scheduled to release third-quarter earnings on Oct 29. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Bausch Health Cos Inc. (BHC - Free Report) is set to report third-quarter earnings on Nov 3. The stock is currently a #3 Ranked player and has an Earnings ESP of +5.80%.
Canopy Growth Corporation (CGC - Free Report) is set to report third-quarter earnings on Nov 12. The stock presently has a Zacks Rank #3 and an Earnings ESP of +7.55%.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.5% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>