Centene Corporation announced its 2020 financial guidance. Total revenues are expected to be $78.6 billion to $79.4 billion, and diluted earnings per share are expected to be $4.17 to $4.33. Adjusted diluted earnings per share for 2020 are expected to be $4.64 to $4.84.
Read More: Personetics Joins the AWS Partner Network Global Startup Program
For its 2020 fiscal year, the Company’s guidance is as follows:
- Total revenues in the range of approximately $78.6 billion to $79.4 billion.
- Diluted earnings per share of approximately $4.17 to $4.33.
- Adjusted diluted earnings per share of approximately $4.64 to $4.84.
- Health benefits ratio of approximately 86.0% to 86.5%.
- Selling, general and administrative (SG&A) expense ratio of approximately 9.2% to 9.7%.
- Adjusted SG&A expense ratio of approximately 9.1% to 9.6%, which excludes $15 million to $25 million of acquisition related expenses.
- Effective tax rate of approximately 34.0% to 36.0%.
- Diluted shares outstanding of approximately 422.5 million to 424.5 million.
Read More: FocusCFO to Join JumpStart Preferred Partner Program
“We are on track to close another successful year at Centene, as a result of strong execution across our product and market portfolio,” said Michael Neidorff, Chairman, President and CEO of Centene. “We look ahead at 2020 well-positioned to continue to deliver on our growth strategy with strong top and bottom-line performance. It will be a transformational year for Centene as we look forward to completing the WellCare transaction and solidify our place as the premier government-sponsored healthcare enterprise. We remain focused on enhancing our ability to serve our members and improving their health, while creating significant value for our shareholders.”
The Company’s 2020 guidance excludes the pending WellCare acquisition, associated one-time integration costs, the related financing and closing costs, and the impact of the previously announced divestitures. The acquisition is subject to regulatory approval and is expected to close in the first half of 2020. The Company’s 2020 guidance includes acquisition related expenses of $15 million to $25 million for legal and integration planning expenses. Additionally, our 2020 guidance reflects a delay in the North Carolina start date from February 1, 2020 to October 1, 2020, resulting in a reduction of revenues of approximately $500 million and diluted earnings per share of approximately $0.06.
The Company affirms its 2019 total revenues guidance in the previously announced range of $73.6 billion to $74.2 billion, updates its 2019 diluted earnings per share guidance to a range of approximately $3.01 to $3.18, and affirms its 2019 adjusted diluted earnings per share guidance of approximately $4.29 to $4.49. The 2019 diluted earnings per share guidance was decreased by $0.03 to reflect the net carrying cost of the $7.0 billion issuance of senior notes completed in December in preparation for the WellCare acquisition. The net carrying costs include the related interest expense and corresponding investment income. Full year 2019 earnings will be reported on February 4, 2020, at 6:00 AM, with a conference call at 8:30 AM (Eastern Time).
Read More: FintechOS Raises GBP 10.7 Million (USD 14 Million) Series A for Global Expansion
1 comment
Comments are closed.