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Centene Corp. (CNC - Free Report) is a well diversified, multi-national healthcare company that has been provides a set of services to the government sponsored healthcare programs since 1954.
The Wisconsin-based company has grown substantially in the last three years through acquisitions, partnerships and alliances. The company’s operating performance has been improving consistently over last few years. Financial liquidity has supported the company’s inorganic growth initiatives that have been the main revenue driver till date. Continuous focus on maximizing shareholders value has always made the stock lucrative to investors.
However, Centene suffers from rising level of debts. Consistently surging expenses also remain a major threat for the company. Moreover, Donald Trump’s decision to repeal former President Barrack Obama's Affordable Care Act (ACA), that has casted an air of uncertainty on the medical sector, also remains a major headwind for this company.
Centene has a decent history when it comes to earnings as the company has beaten estimates in all of the last four quarters, making for an average surprise of 10.5%.
Revenue: Operating revenues also surpassed our estimate. Our consensus called for revenues of $11.8 billion, and the company reported revenues of $11.9 billion.
Key Stats to Note:
Managed care membership of 12.3 million, rose 8% year over year.
Health benefits ratio (HBR) was 88% in the second quarter of 2017, compared to 87% in the prior year quarter.
Total Operating Expenses of $11.6 billion increased 10% over the prior year quarter.
Operating cash flow was $97 million in the third quarter of 2017 and $1,039 million for the first half of 2017.
Guidance
For 2017, Centene expects adjusted earnings per diluted share to be in the range of $4.86- $5.04. Total revenues are expected to be in the range of $47.4 billion to $48.2 billion.
Check back later for our full write up on this Centene earnings report later!
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It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
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Centene's (CNC) Q3 Earnings, Revenues Beat Estimates
Centene Corp. (CNC - Free Report) is a well diversified, multi-national healthcare company that has been provides a set of services to the government sponsored healthcare programs since 1954.
The Wisconsin-based company has grown substantially in the last three years through acquisitions, partnerships and alliances. The company’s operating performance has been improving consistently over last few years. Financial liquidity has supported the company’s inorganic growth initiatives that have been the main revenue driver till date. Continuous focus on maximizing shareholders value has always made the stock lucrative to investors.
However, Centene suffers from rising level of debts. Consistently surging expenses also remain a major threat for the company. Moreover, Donald Trump’s decision to repeal former President Barrack Obama's Affordable Care Act (ACA), that has casted an air of uncertainty on the medical sector, also remains a major headwind for this company.
Centene has a decent history when it comes to earnings as the company has beaten estimates in all of the last four quarters, making for an average surprise of 10.5%.
Currently, Centene holds a Zacks Rank #1 (Strong Buy), but that could definitely change following its earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank stocks here.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Centene beats on earnings. Our consensus called for EPS of $1.25, and the company reported adjusted diluted EPS of $1.35.
Centene Corporation Price and EPS Surprise
Centene Corporation Price and EPS Surprise | Centene Corporation Quote
Revenue: Operating revenues also surpassed our estimate. Our consensus called for revenues of $11.8 billion, and the company reported revenues of $11.9 billion.
Key Stats to Note:
Managed care membership of 12.3 million, rose 8% year over year.
Health benefits ratio (HBR) was 88% in the second quarter of 2017, compared to 87% in the prior year quarter.
Total Operating Expenses of $11.6 billion increased 10% over the prior year quarter.
Operating cash flow was $97 million in the third quarter of 2017 and $1,039 million for the first half of 2017.
Guidance
For 2017, Centene expects adjusted earnings per diluted share to be in the range of $4.86- $5.04. Total revenues are expected to be in the range of $47.4 billion to $48.2 billion.
Check back later for our full write up on this Centene earnings report later!
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>