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Centene Corp. Reports Operating Results (10-Q)

July 24, 2012 | About:
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10qk

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Centene Corp. (CNC) filed Quarterly Report for the period ended 2012-06-30.

Centene Corp has a market cap of $1.9 billion; its shares were traded at around $34.64 with a P/E ratio of 16.7 and P/S ratio of 0.4. Centene Corp had an annual average earning growth of 20.2% over the past 10 years. GuruFocus rated Centene Corp the business predictability rank of 4-star.

Highlight of Business Operations:

During the second quarter of 2012, we recorded a loss of $(0.68) per diluted share composed of a $(0.16) loss from operations and an impairment loss of $(0.52), compared to net earnings per share of $0.54 in the prior year and $0.45 in the preceding quarter. The losses were the result of three primary factors:

Diluted net loss per share of $(0.68), including an impairment loss of $(0.52) per diluted share, compared to net earnings per share of $0.54 in the prior year.

The consolidated G&A expense ratio for the three months ended June 30, 2012, and 2011 was 8.2%, and 11.2%, respectively. The year over year decrease in the G&A expense ratio reflects the leveraging of expenses over higher revenues in 2012 and a reduction in performance based compensation expense in 2012 which lowered the G&A expense ratio by 80 basis points. The G&A ratio in 2011 reflects a 50 basis point decrease resulting from the recognition of revenue in the second quarter of 2011 from our Mississippi contract for the period January 1, 2011 through March 31, 2011.

Premium and service revenues increased 84.7% in the three months ended June 30, 2012, due to growth in our Medicaid segment and the associated specialty services provided to this increased membership as well as the Arizona expansion and carve-in of pharmacy services in Texas and Ohio. Earnings from operations decreased $31.1 million in the three months ended June 30, 2012, reflecting the impairment loss of $28.0 million and a high level of medical costs in our individual health insurance business, especially for recently issued policies related to members converted from another insurer throughout the first quarter of 2012, partially offset by growth in our pharmacy business and the associated specialty services provided to our increased Medicaid membership.

Premium and service revenues increased 74.5% in the six months ended June 30, 2012, due to growth in our Medicaid segment and the associated specialty services provided to this increased membership as well as the Arizona expansion and carve-in of pharmacy services in Texas and Ohio. Earnings from operations decreased $21.9 million in the six months ended June 30, 2012, reflecting the impairment loss of $28.0 million and a high level of medical costs in our individual health business, especially for recently issued polices related to members converted in the first quarter of 2012, partially offset by growth in our pharmacy business and the associated specialty services provided to our increased Medicaid membership.

Read the The complete Report

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