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Comparing EPS Growth Trends for CNC and HUM in 2019

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EPS guidance

In its first-quarter earnings press release, Centene (CNC) revised its 2019 adjusted diluted EPS guidance upward from $4.11–$4.31 to $4.24–$4.44. In the first quarter, the company reported adjusted diluted EPS of $1.34, a YoY (year-over-year) rise of 23.50% and $0.04 higher than the consensus estimate. To learn more about the company’s EPS drivers in 2019, read Centene Revises Its 2019 EPS Guidance Upward.

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In its first-quarter earnings press release, Humana (HUM) narrowed its 2019 non-GAAP (generally accepted accounting principles) EPS guidance range from $17.00–$17.50 to $17.25–$17.50 due to the better-than-expected performance of its Retail segment in the quarter. The company has narrowed its 2019 GAAP EPS guidance from $16.60–$17.10 to $16.63–$16.88, and it’s changed the estimate for its GAAP to non-GAAP EPS adjustments from $0.40 to $0.62. In the first quarter, Humana reported non-GAAP EPS of $4.48, a YoY rise of 33.33% and $0.18 higher than the consensus estimate. According to its first-quarter earnings conference call, Humana has guided for second-quarter non-GAAP EPS in the low-30% range compared to its 2019 EPS.

Wall Street estimates

Analysts expect Centene’s non-GAAP EPS to see YoY rises of 23.08% to $4.36 in 2019, 12.77% to $4.91 in 2020, and 13.88% to $5.60 in 2021. These projections don’t include EPS contributions from WellCare Health Plan’s portfolio, as the deal has yet to be completed. On the other hand, analysts expect Humana’s non-GAAP EPS to see YoY rises of 20.36% to $17.51 in 2019, 7.17% to $18.77 in 2020, and 14.54% to $21.50 in 2021.

Analysts expect Centene’s non-GAAP EPS to see YoY rises of 37.68% to $1.24 in the second quarter, 9.34% to $0.98 in the third quarter, and 9.59% to $0.76 in the fourth quarter of 2019. Analysts also expect Humana’s non-GAAP EPS to see YoY rises of 34.25% to $5.32 in the second quarter, 7.92% to $4.94 in the third quarter, and 4.69% to $2.77 in the fourth quarter of 2019.

 

 

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