- Centene (NYSE:CNC) reports financial results for Q2 ended June 30, 2021.
- Total Revenues for Q2 rose 12% Y/Y to $31B, beating analysts forecast of $30.11B. The revenue increase was due to Medicaid and Medicare membership growth and recent acquisition of PANTHERx.
- June 30, 2021 managed care membership of 25.4M, an increase of 3%, compared to prior year.
- Health benefits ratio of 88.3% vs. 82.1% in Q2 2020. The increase was attributable to overall lower utilization in Q2 2020 due to the COVID-19, higher utilization in the Marketplace business in Q2 2021, and an unfavorable 2020 risk adjustment in 2021.
- Non-GAAP EPS fell 48% compared to prior year to $1.25, missing forecast of $1.37.
- Net loss for Q2 widened to $535M vs net income of $1.2B recoreded in Q2 2020. During the quarter, Centene recorded a legal settlement reserve estimate of $1.25B (inclusive of the Ohio and Mississippi settlements).
- Operating cash flow of $1.7B.
- The company is updating guidance for FY 2021. CNC has raised its total revenue guidance to $123.3B-$125.3B (consensus $120.91B) from prior outlook of $120.1B-$122.1B.
- Non-GAAP EPS guidance is unchanged to $5.05-$5.35, consensus $5.16. GAAP EPS is expected between $1.82-$2.06, prior $3.68-$3.90.
- Health benefits ratio of 87.5%-88.1%.
- "Centene delivered solid second-quarter results as we continued to support our members with high quality service and deliver value to state and local partners," said Michael F. Neidorff, Chairman, President and CEO.
- Previously (July 27): Centene EPS misses by $0.12, beats on revenue, boost FY21 revenue outllok