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Centene (CNC) Tops Q4 Earnings and Revenues

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Have you been eager to see how Centene Corporation (CNC - Free Report) ) performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this popular global professional services company’s earnings release this morning.

An Earnings Beat

Centene came out with operating earnings of 97 cents per share, which beat the Zacks Consensus Estimate of 94 cents. Rise in revenues primarily supported the results.

Centene Corporation Price and EPS Surprise

Earnings Surprise History

Centene has a decent earnings surprise history. The company delivered positive surprises in each of the last four quarters, with an average beat of 9.8%.

Revenue Came In a Bit Higher than Expected

Centene posted revenues of $12.8 billion, which was higher than the Zacks Consensus Estimate of $12.3 billion.

Key Q4 Statistics

Managed care membership was  12.2 million on Dec 31, 2017, up 7% over 2016.

Health benefits ratio (HBR) was 87.3% in the fourth quarter of 2017, compared to 84.8% in the prior year quarter.

Total Operating Expenses of $12.6 billion increased 11% over the prior year quarter.

Operating cash flow was $450 million at the end of  the fourth quarter of 2017 and $1,489 millionfor 2017.

2018 Guidance Raised

For 2018, Centene expects adjusted earnings per diluted share to be in the range of $6.95- $7.35, as against the previously guided range of $5.47 to $5.87.

 Total revenues are expected to be in the range of $60.6 billion to $61.4 billion, up from the previous guidance of $60.0 billion to $60.8 billion.

What Zacks Rank Says

Centenesports a Zacks Rank #1 (Strong Buy). However, since the latest earnings performance yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Check back later for our full write up on this Centene earnings report!

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