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Centene's (CNC) Q1 Earnings and Revenues Beat Estimates

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Have you been eager to see how Centene Corporation (CNC - Free Report) ) performed in Q1 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 $1.39 per share, which beat the Zacks Consensus Estimate of $1.32.

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 5.05%.

Revenue Came In a Bit Higher than Expected

Centene posted revenues of $18.4 billion, beating the Zacks Consensus Estimate by 5%.

Key Q4 Statistics

Managed care membership came in at 14.7 million, reflecting a 14% year over year increase.

Health benefits ratio (HBR) was 85.7% compared with 84.3% in the prior-year period.

Adjusted SG&A expense ratio came at 9.5% for the first quarter of 2019 compared with 10.3% for the same period last year.

At the end of first quarter of 2019, cash flow from operations was $1.3 billion, down 28.7% from 2018 end’s level.

2019 Guidance Revised

It expects its total revenues to be in the band of $72.8-73.6 billion, up from the previous projection of $70.3-$71.1 billion.

Effective tax rate has been decreased by 50 bps because of the favorable audit results recognized in the first quarter.

Adjusted diluted EPS is predicted in the band of $4.24 to $4.44, up from the earlier expectation of $4.11- $4.31. This is because of solid first quarter results.

What Zacks Rank Says

Centene carries a Zacks Rank #3 (Hold). 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 (Strong Buy) stocks here.

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

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