Summary
Centene Corporation, a diversified healthcare enterprise, reported strong financial performance for the year ended December 31, 2017. The company experienced significant growth in total revenues, reaching $48.4 billion, a 19% increase year-over-year, driven largely by the full-year impact of the Health Net acquisition and organic membership growth across its government-sponsored and commercial healthcare programs. Net earnings from continuing operations attributable to Centene were $828 million, a substantial increase of 48% compared to the prior year, reflecting improved operational efficiencies and strategic execution. The company's membership grew by 7% to 12.2 million, underscoring its expanding reach in serving under-insured and uninsured individuals through Medicaid, Medicare, and Health Insurance Marketplace offerings. Centene also announced a significant strategic move with an agreement to acquire Fidelis Care in New York for $3.75 billion, signaling a continued commitment to expanding its market presence. The company's robust financial performance and strategic growth initiatives position it for continued success in the healthcare sector.
Financial Highlights
54 data points| Revenue | $48.38B |
| Cost of Revenue | $1.85B |
| Gross Profit | $46.53B |
| SG&A Expenses | $4.45B |
| Operating Expenses | $47.18B |
| Operating Income | $1.20B |
| Interest Expense | $255.00M |
| Net Income | $828.00M |
| EPS (Basic) | $2.40 |
| EPS (Diluted) | $2.34 |
| Shares Outstanding (Basic) | 344.85M |
| Shares Outstanding (Diluted) | 353.40M |
Key Highlights
- 1Total revenues increased by 19% to $48.4 billion in 2017.
- 2Net earnings from continuing operations grew by 48% to $828 million in 2017.
- 3Total membership reached 12.2 million, a 7% increase year-over-year.
- 4The company signed an agreement to acquire Fidelis Care for $3.75 billion, expanding its New York presence.
- 5Health Benefits Ratio (HBR) was 87.3%, with SG&A expense ratio at 9.7%.
- 6Diluted EPS increased by 38% to $4.69 in 2017.