Revenue guidance

In its first-quarter earnings press release, Centene (CNC) revised its 2019 revenue guidance upward from $70.3 billion–$71.1 billion to $72.8 billion–$73.6 billion. In the first quarter, the company reported revenue of $18.44 billion, a YoY (year-over-year) rise of 39.79% and $1.01 billion above the consensus estimate. To learn more about the company’s revenue drivers in 2019, read Centene Revises Its 2019 Revenue Guidance Upward.

In its first-quarter earnings press release, Humana (HUM) also revised its 2019 revenue guidance upward from $63.1 billion–$63.7 billion to $63.3 billion–$63.9 billion. According to its first-quarter earnings conference call, this was mainly attributable to the solid performance of its Retail segment in the first quarter. In the quarter, Humana reported revenue of $16.11 billion, a YoY rise of 12.80% and $457.34 million above the consensus estimate.

Comparing CNC’s and HUM’s Revenue Growth Trends in 2019

Wall Street estimates

Analysts expect Centene’s revenues to see YoY rises of 22.04% to $73.37 billion in 2019, 8.20% to $79.38 billion in 2020, and 6.97% to $84.91 billion in 2021. These projections don’t include revenue contributions from WellCare Health Plan’s portfolio, as the deal has yet to be completed. On June 24, investors of both companies will be giving their verdicts on the proposed deal in a special shareholder meeting. The companies expect the transaction to close in the first half of 2020. To learn more about the Centene–WellCare Health Plan deal, read Centene’s Acquisition of WellCare Health Plans: The Must-Knows.

On the other hand, analysts expect Humana’s revenues to see YoY rises of 12.24% to $63.88 billion in 2019, 8.76% to $69.47 billion in 2020, and 9.11% to $75.80 billion in 2021.

Analysts expect Centene’s revenues to see YoY rises of 26.67% to $17.96 billion in the second quarter, 13.12% to $18.31 billion in the third quarter, and 11.53% to $18.47 billion in the fourth quarter of 2019. Analysts also expect Humana’s revenues to see YoY rises of 11.66% to $15.92 billion in the second quarter, 12.19% to $15.94 billion in the third quarter, and 13.36% to $16.06 billion in the fourth quarter of 2019.

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