Centene kept its momentum going in Q2, achieving total managed care membership of 15 million.
At the end of Q2 2019, Centene Corp. posted revenues of $18.4 billion, a 29% year-over-year increase, according to the insurer's earnings report released Tuesday morning.
Centene beat its earnings expectations by $0.05 per diluted share (EPS), with a diluted EPS of $1.18, representing a 57% year-over-year increase. The company's adjusted EPS was $1.34, up 49% compared to Q2 2018.
The St. Louis-based insurer grew to cover 15 million managed care members, up 2.2 million members, as its Medicaid segment grew by nearly 1.3 million members.
The most significant developments for Centene during Q2 related to its ongoing $17.3 billion deal to acquire Tampa-based WellCare Health Plans, which received shareholder approval in late June.
"Our strong second quarter results demonstrate Centene's favorable financial and operating momentum," Michael Neidorff, CEO of Centene, said in a statement. "Our pending WellCare acquisition will bolster and diversify our product offerings, significantly increase our scale and provide access to new markets - enhancing Centene's long-term growth outlook."
Company leadership once again raised the annual guidance for total revenues from a range of $72.8 billion to $73.6 billion, to a range of $73.6 billion to $74.2 billion.
Similarly, Centene now projects its year-end diluted EPS to be between $3.70 and $3.87.
Centene recorded total cash, cash equivalents, and restricted cash and cash equivalents just shy of $6.9 billion in Q1, which was down from $8.5 billion in Q2 2018.
However, the company achieved total cash flows provided by operations of $917 million and adjusted net earnings of $561 million, an increase of over $201 million year-over-year.
The WellCare acquisition, the centerpiece of Centene's forward-looking business strategy, encountered a brief obstacle in late May when the Department of Justice requested additional information ahead of the planned merger. The move effectively delays finalization of the deal by 30 days.
Within a week, Centene was in the news again as Humana leadership publicly refuted media reports that the Louisville-based insurer was interested in purchasing Centene as the WellCare deal faltered.
Additional Centene Q2 earnings report highlights:
- The insurer reported $15.9 billion in cash, investments, and restricted deposits at the end of June 2019.
- Medicaid revenues rose 36% year-over-year, again leading the way among Centene's membership segments.
- Commercial and Medicare revenues both rose 23% and 22% compared to Q2 2018, respectively.
For complete financial information, review Centene's filing with the Securities and Exchange Commission.
Jack O'Brien is the finance editor at HealthLeaders, a Simplify Compliance brand.
Photo credit: KIEV, UKRAINE - Dec 11, 2018: Centene Corporation Insurance company logo seen displayed on smart phone. - Image / Editorial credit: IgorGolovniov / Shutterstock.com
Centene posted revenues of $18.4 billion, a 29% year-over-year increase.
CEO Michael Neidorff said the pending WellCare deal will "bolster and diversify" the insurer's portfolio.
Company leadership once again raised the company's annual financial guidance.