In its fourth-quarter earnings press release, Anthem (ANTM) guided for 2019 operating revenue of $100 billion, a YoY (year-over-year) rise of $8.7 billion.
Today, UnitedHealth Group (UNH) reported its earnings results for the second quarter of fiscal 2018. The company reported sales of $56.1 billion, up ~12% on a (year-over-year) basis.
Of the 22 analysts tracking UNH stock on April 19, 50% rated it as a “strong buy,” and the remaining 50% of these analysts rated the company as a “buy.”
In the second week of April 2018, St. Jude Children’s Research Hospital announced the launch of the St. Jude Cloud, which it described as the world’s largest public store of pediatric cancer genomics data.
Cigna (CI) has projected its expected annual revenue growth rate in the range of 6%–to 8% from 2017 to 2021, assuming completion of the Express Scripts acquisition.
Headquartered in Minnesota, Fortune 500 company UnitedHealth Group (UNH) is the world’s largest healthcare company based on revenue, which totaled ~$184 billion for UNH in fiscal 2016.
Through May 26, 2017, 83% of healthcare stocks have delivered earnings above analysts’ estimates. About 16% of healthcare stocks have missed analysts’ estimates, while 2% reported earnings in line with analysts’ estimates.
In 1Q17, WellCare Health Plans’ (WCG) Medicare Health Plans business reported revenues close to $1.1 billion, which represents year-over-year growth of ~12.4%.
Expense guidance for 2017 For full-year 2017, Anthem (ANTM) has projected the medical cost trend for its local group business to fall in the range of 6.5%–7.0%. To learn more about medical cost trends, please see Medical cost trend means rising premiums for health insurance. If Anthem’s actual medical cost trend for full-year 2017 turns out […]
In 1Q17, around 12.1 million members were enrolled in Centene’s (CNC) various healthcare plans, which is a year-over-year (or YoY) rise of around 600,000 beneficiaries.
In its bid to control healthcare costs, UnitedHealth Group’s (UNH) OptumRx segment has been actively deploying data analytics across its Optum platform.
UnitedHealth Group’s (UNH) Optum One is being used by about 700 hospitals and 7,000 medical clinics, which together cover about 140,000 healthcare providers.
Optum360, UnitedHealth Group’s (UNH) hospital revenue cycle management solution, is expected to reach $60.0 billion in billings for clients and partner organizations.
The consensus 12-month target price for UnitedHealth Group’s stock is ~$152.60, which represents a rise of 8.8% from the stock’s closing price of $140.30 on July 11, 2016.
According to the MAE (material adverse effect) clause of the Starz-Lions Gate deal, legislation that limits intellectual property protection wouldn’t be considered a MAE.
In the merger deal between Lions Gate Entertainment (LGF) and Starz (STRZA), the MAE (material adverse effect) clause lays out the circumstances under which either party can back out of the transaction.
In this part of the series, we’ll look at the MAE clause of the Amsurg (AMSG) merger agreement with Envision Healthcare (EVHC) and how Amsurg could back out of the deal.
In the risk arbitrage world, a 2.8% annualized return is pretty small. There’s some overlap that could concern regulators. The main risk would be the timing risk.
If the Talen deal closes as advertised, you will make about $0.15. If the deal breaks, you will lose $1.85 per share. So, the risk-reward ratio is just over 12:1.
Given Talen’s close proximity to the Marcellus Shale region, it faces competition from other electricity generating companies that use cheap natural gas.
Salesforce.com is paying a pretty penny for Demandware at 11 times its revenue. This gives a good indication of just how much potential growth Salesforce.com sees in the space.
Salesforce.com (CRM) is buying e-commerce cloud computing firm Demandware (DWRE) in a $2.8 billion transaction. The merger is structured as a tender offer.
In the Monsanto-Bayer deal, Bayer’s shareholders should expect to see mid-single-digit accretion to core EPS (earnings per share) in the first year and double-digit accretion thereafter.
On May 1, Baker Hughes (BHI) and Halliburton (HAL) officially terminated their merger agreement. Halliburton will pay Baker Hughes the $3.5 billion reverse termination fee.
In its 1Q16 conference call, Anthem updated its 2016 revenue guidance to $81 billion–$82 billion—higher than the previous projection by about $1 billion.
In 1Q16, UnitedHealth Group witnessed overall medical cost trends in the range of 5.5%–6.5%. This is in line with the 2016 guidance given in December 2015.
UnitedHealth Group’s healthcare delivery business, OptumHealth, managed to earn $4 billion revenues in 1Q16, which represents a YoY growth of about 22%.
On March 21, Starwood and Marriott amended their merger agreement to top Anbang’s offer. The amended merger spread is trading at an annualized return of 1.3%.
On March 14, Starwood Hotels & Resorts Worldwide (HOT) announced that it received an unsolicited takeover approach from a consortium of investors led by China’s Anbang Insurance Group.
As with any private equity transaction, the goal is to buy the company, improve its performance, and then sell it back into the marketplace at a higher multiple.
There’s the possibility of a bidding war. Arbs will probably have a small position in case there’s a bidding war. They will scale in if the spread widens.
Samsonite will need to file for merger approval under the Hart-Scott-Rodino Antitrust Improvements Act. The companies will need to file for Canadian antitrust approval.
On March 3, Samsonite and Tumi announced that Samsonite will buy Tumi in a $1.8 billion deal. The deal will be a cash transaction set at $26.75 per share.
ITC (ITC) was trading at ~$33 per share before the press reported it was in talks for a sale. If the deal breaks, will ITC’s share price return to its former level?
Fortis (FRTSF) is buying ITC (ITC) in the largest Canadian purchase of a US utility. Fortis intends to sell a 19% stake in order to help finance the transaction.
On February 9, 2016, Fortis and ITC announced a merger. Fortis is buying ITC in a $6.6 billion deal. Including debt, the deal’s value is $11.2 billion.
Centene believes that if all its existing markets adopt Medicaid expansion, it would result in 4 million additional members becoming eligible for Medicaid.
Centene posted its 4Q15 and 2015 earnings on February 09 and reported diluted operating EPS attributable to common shareholders of about $2.89 for 2015.
In 4Q15, Anthem’s medical care ratio, a ratio of medical costs against premium revenues, rose by 2.5% YoY. Its medical care ratio for fiscal 2015 was 83.3%.
Anthem plans to negotiate pharmaceutical pricing with Express Scripts in an effort to improve affordability, secure more members, and enroll new customers.
Anthem’s diluted earnings per share in 4Q15 fell short of estimates by $0.04. The results represent the company’s lowest quarterly adjusted EPS in 2015.
Aetna’s Humana acquisition is mainly aimed at increasing the combined companies’ exposure to the high-growth Medicare business. The deal is currently being scrutinized by antitrust regulators.
UnitedHealth Group (UNH) released its 4Q15 and full year 2015 earnings on January 19, 2015. The company registered diluted EPS attributable to common shareholders of $1.26 in 4Q15 and $6 for 2015.
Shire is a biopharmaceutical company that focuses on rare diseases. Shire is best known for its treatments in ADHD, and the market here is quite large.
The Baxalta–Shire merger could create the top platform for rare diseases in the world. Baxalta brings Advate, a treatment for hemophilia, a rare blood disease.
On Monday, January 11, 2016, Shire agreed to buy Baxalta for a combination of cash and stock. BXLT shareholders will receive $18.0 cash per share of BXLT.
The Jarden–Newell Rubbermaid merger is expected to be immediately accretive to earnings. Synergies are expected to be realized in distribution and other areas.
The MAE (material adverse effect) clause is one of the first things arbitrageurs look at in a merger agreement. Let’s examine the Allergan–Pfizer merger’s MAE.
