Alpha Gen Capital
Yesterday, 7:10 AM
- Centene (NYSE:CNC) Q2 Results ($M): Total Revenues: 10,897 (+97.9%); Premium and Service: 10,276 (+98.2%).
- Net Income: 169 (+92.0%); EPS: 0.97 (+34.7%); Non-GAAP EPS: 1.29 (+69.7%); CF Ops (6 mo.): (225) (-157.0%).
- Health Benefits Ratio: 86.6% (-2.1%).
- Total Membership: 11,430,800 (+147.8%); Total At-Risk Membership: 8,615,100 (+94.2%).
- 2016 Guidance: Total Revenues: $39.4B - 40.0B; EPS: $2.65 - 3.00; Non-GAAP EPS: $4.20 - 4.55; Health Benefits Ratio: 87.0 - 87.5%.
- Shares are up 2% premarket on light volume.
Thu, Mar. 24, 5:43 PM
- Hologic (NASDAQ:HOLX) is replacing Pepco Holdings (was just acquired by Exelon), and Centene (NYSE:CNC) will replace Ensco (NYSE:ESV), in the S&P 500 after Tuesday's close. (Press Release - .pdf)
- Abiomed (NASDAQ:ABMD) will take Hologic's spot in the S&P MidCap 400, and Ensco will take Centene's spot. First Industrial Realty Trust (NYSE:FR) will replace Health Net (just acquired by Centene) in the 400.
- ServisFirst Bancshares (NASDAQ:SFBS) will replace National Penn Bancshares (about to be acquired by BB&T) in the S&P SmallCap 600 after the April 1 close. Banc of California (NYSE:BANC) will take Abiomed's spot in the 600.
- HOLX +2% after hours. CNC +1.6%. FR +3.5%. BANC +3.5%. ESV -0.5%.
Wed, Mar. 23, 12:40 PM
- Health Net (HNT +4.7%) and Centene (CNC +5.6%) buck the market's down day. The bull catalyst is the approval of their planned merger by the California Department of Insurance. Centene announced its $6.8B takeover of Health Net in July 2015. The transaction should close shortly.
- Previously: Centene takes out Health Net for $6.8B (July 2, 2015)
Mon, Jan. 25, 6:55 PM
- Centene (NYSE:CNC) discloses that it cannot locate six hard drives in its inventory of IT assets. The files contain personal health information on ~950K patients who received laboratory services from 2009 - 2015, including name, address, date of birth, social security number, member ID and health information, but no payment or financial information.
- CEO Michael Neidorff says, "Centene takes the privacy and security of our members' information seriously. While we don't believe this information has been used inappropriately, out of abundance of caution and in transparency, we are disclosing an ongoing search for the hard drives. The drives were part of a data project using laboratory results to improve the health outcomes of our members."
- Affected individuals will be notified. The company will offer them free credit and healthcare monitoring as a precaution. It is also in the process of reinforcing and reviewing its IT asset management procedures.
- Shares are down 2% after hours on increased volume.
Mon, Jan. 25, 5:41 PM
Nov. 19, 2015, 3:01 PM
- Medical insurers and managed care providers are taking it on the chin today. UnitedHealth Group (UNH -5.5%) brought the rain with its softer earnings guidance as a result of weaker demand for individual insurance purchased through exchanges. It seems that the premium hikes, which the Affordable Care Act was supposed to curtail, are having their predictable effect.
- Previously: UnitedHealth Group down 6% on lowered guidance (Nov. 19)
- Related tickers: (AET -7.3%)(CI -5.7%)(HUM -4.2%)(CNC -9%)(ANTM -6.8%)(WCG -4.6%)(MGLN -4.4%)(HNT -5.2%)
Jul. 2, 2015, 7:50 AM
- Centene (NYSE:CNC) acquires managed healthcare firm Health Net (NYSE:HNT) for ~$6.8B, including the assumption of ~$500M of debt. The combined firms will have estimated pro forma premium and service revenues of ~$37B this year and the merger will be significantly accretive to EPS in the first year after closing.
- Under the terms of the deal, Health Net shareholders will receive 0.622 shares of Centene and $28.25 in cash for each Health Net share. The total consideration of $78.57, based on CNC's closing price yesterday, represents a 21% premium over HNT's price at yesterday's close. Once the transaction is finalized in early 2016, CNC shareholders will own 71% of the combined entity while HNT shareholders will own 29%.
- Centene will fund the cash portion of the deal with cash on hand and debt.
Jun. 25, 2015, 10:26 AM| Jun. 25, 2015, 10:26 AM | 87 Comments
Mar. 4, 2015, 12:11 PM
- Hospitals rally on comments from Supreme Court Justice Anthony Kennedy, often a swing vote in important cases. He says there is a powerful point to the Obama administration's argument that the Affordable Care Act would fall apart if the subsidies were ruled invalid.
- The Court is currently hearing arguments in the case King v. Burwell, which challenges federal subsidies in states that did not create their own health insurance exchanges. Its final decision will not be announced until June, though.
- Hospitals and health insurers have the most at stake. They have benefited greatly since the law was signed in 2010. To date, 11.4M Americans have signed up for coverage in 2015, giving both groups more paying customers and potentially cutting the number of non-paying emergency room visits. If the subsidies were ruled invalid then many people would drop coverage due to the higher cost.
- Related tickers: (HCA +6.2%)(THC +5.4%)(UHS +2.6%)(CYH +5.4%)(LPNT +3.3%)(SEM -0.9%)(SSY)(HUM +0.1%)(CI -0.4%)(CNC)(MOH +0.3%)(ANTM +0.5%)(UNH +0.3%)(MGLN +0.3%)(WCG +0.3%)
Jul. 25, 2014, 11:05 AM
Dec. 13, 2013, 12:38 PM
- Centene (CNC +6.6%) is surging after guiding 2014 earnings beyond Wall Street expectations; the Medicaid coverage provider sees 2014 EPS of $3.50-$3.80 on a range of $13.5B-$14B in premium and service revenues vs. analyst consensus estimate of $3.61 EPS on $13.77B in revenue.
- CNC also raises the lower end of its 2013 earnings guidance and now expects EPS of $2.81-$2.87 vs. $2.83 consensus.
- CNC's 2014 outlook does not include its discontinued Kentucky business, fees insurers are expected to pay next year due to the health care overhaul, and the impact of the just-announced acquisition of a majority interest in U.S. Medical Management.
Apr. 1, 2013, 4:08 PM
Mar. 14, 2013, 11:20 AMMedicaid insurer Centene (CNC -1.2%) slips after JPMorgan cut the shares to Neutral, citing concerns over the impact of the health-care overhaul on the managed-care sector. The firm says that Medicaid expansion offers growth opportunities for companies like CNC, but its scope remains in doubt. Its estimates now discount new membership for seven of the company's 16 states, where opposition from lawmakers is making expansion uncertain. | Mar. 14, 2013, 11:20 AM
Dec. 14, 2012, 9:10 AM
Dec. 14, 2012, 8:25 AM
Centene (CNC) -4% premarket after cutting its view for the current year, seeing EPS of $0.10-$0.20 vs. prior guidance of $0.56-$0.66. The Medicaid insurer blames its lower view on higher medical costs associated with an earlier and more intensive flu season in its largest markets. Sees FY 2013 EPS in-line.| Dec. 14, 2012, 8:25 AM
Nov. 7, 2012, 2:05 PM