Summary
Centene Corporation's (CNC) Q3 2016 report highlights significant growth driven primarily by the acquisition of Health Net, Inc., completed in March 2016. Total revenues surged by 86% year-over-year for the quarter and 74% for the first nine months, reaching $10.8 billion and $28.7 billion, respectively. This revenue growth was accompanied by a substantial increase in managed care membership, which more than doubled to 11.4 million. The company successfully integrated Health Net's operations, contributing to expanded Medicaid and Medicare offerings and diversification across new markets. Despite the impressive top-line growth, investors should note the significant increase in debt and the associated rise in interest expenses, largely due to financing the Health Net acquisition. The company's general and administrative expenses also saw a substantial rise, partly due to acquisition-related costs and integration efforts. While net earnings attributable to Centene Corporation increased by 56% to $145 million for the quarter, diluted EPS saw a slight decrease year-over-year due to a larger share base post-acquisition and the impact of acquisition-related expenses. The company continues to navigate a complex regulatory environment, with ongoing focus on managing medical costs and adapting to evolving healthcare policies.
Financial Highlights
51 data points| Revenue | $10.85B |
| SG&A Expenses | $940.00M |
| Operating Expenses | $10.50B |
| Operating Income | $342.00M |
| Interest Expense | $57.00M |
| Net Income | $147.00M |
| EPS (Basic) | $0.43 |
| EPS (Diluted) | $0.42 |
| Shares Outstanding (Basic) | 341.55M |
| Shares Outstanding (Diluted) | 350.99M |
Key Highlights
- 1Total revenues for Q3 2016 increased by 86% to $10.8 billion, driven by the Health Net acquisition and organic growth.
- 2Managed care membership grew significantly to 11.4 million by September 30, 2016, a 137% increase year-over-year.
- 3The acquisition of Health Net, Inc. was completed in March 2016 for approximately $6.0 billion, significantly expanding Centene's market presence and service offerings.
- 4Net earnings attributable to Centene Corporation increased by 56% to $145 million for the third quarter of 2016.
- 5Total debt increased substantially to $4.6 billion as of September 30, 2016, primarily to fund the Health Net acquisition.
- 6General and administrative expenses rose by 105% to $940 million in Q3 2016, impacted by acquisition-related costs and integration efforts.
- 7Diluted EPS for the third quarter was $0.83, a slight increase from $0.76 in Q3 2015, but acquisition-related expenses and a larger share base were noted.