Revenue projections for 2018
Centene (CNC) expects revenue in the range of $59.8 billion–$60.3 billion in 2018, higher than its previously projected range of $59.2 billion–$60.0 billion. The company expects to report revenue of more than $69 billion in 2019.
On July 2, Centene issued a press release announcing the completion of its acquisition of the Fidelis Care health plan from New York State for a consideration of $3.75 billion. As per Centene’s third-quarter earnings conference call, the deal will increase Centene’s annual revenue by $11.5 billion.
Analysts expect Centene to report revenue of $60.04 billion in 2018, a YoY (year-over-year) rise of 24.09%. The company is also expected to report revenue of $69.81 billion in 2019, a YoY rise of 16.28%.
Performance in 2018
In the first nine months of 2018, Centene reported revenue of $43.56 billion, a YoY rise of 22.43%. In the third quarter, the company witnessed a YoY revenue rise of $4.3 billion.
As per Centene’s third-quarter earnings conference call, the company benefited from several factors, including the completion of the acquisition of Fidelis Care and a robust rise in beneficiaries in the health insurance marketplace business, in the quarter. Additionally, the company’s expansion of various government-sponsored programs, such as the Pennsylvania Long-Term Care Service & Support and the Illinois expanded Medicaid program, is also playing a pivotal role in bolstering Centene’s revenue performance.
On February 26, Centene issued a press release announcing its plans to acquire MHM Services, a major player in the correctional healthcare market. This deal has expanded Centene’s presence in two new states. On March 5, Centene issued a press release announcing its plans to acquire primary care provider Community Medical Group. In October 2017, Centene’s subsidiary, AcariaHealth, issued a press release announcing its plans to acquire specialty pharmacy Foundation Care. These acquisitions have played a major role in boosting Centene’s revenue year-to-date.
In the next article, we’ll discuss earnings projections for Centene in greater detail.