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Centene issues FY'18 guidance

Centene Corp. has issued its 2018 financial guidance and confirmed its 2017 outlook.

For 2018, the company expects total revenue of $60.0 billion to $60.8 billion, EPS of $4.63 to $4.97 and adjusted EPS of $5.47 to $5.87. The adjusted figure excludes approximately 20 cents to 24 cents per share of acquisition-related expenses and approximately 64 cents to 66 cents per share of amortization of acquired intangible assets.

The S&P Capital IQ consensus normalized EPS estimate for 2018 is $5.52.

In setting its 2018 guidance, the company has assumed that its acquisition of Fidelis Care closes April 1, 2018. The acquisition remains subject to regulatory approval. The company has also assumed $2.3 billion of new equity financing becomes outstanding Feb. 1, 2018, and $1.6 billion of new debt financing becomes outstanding March 1, 2018.

If the Fidelis acquisition closing date and related financing would have been assumed to be Jan. 1, 2018, both the top and bottom end of the GAAP and adjusted EPS guidance ranges would increase by 18 cents per share and 23 cents per share, respectively. Additionally, the top and bottom end of the total revenue guidance range would increase by approximately $2.8 billion.

The company has affirmed its 2017 guidance, expecting total revenues of $47.4 billion to $48.2 billion, EPS of about $4.04 to $4.18 and adjusted EPS of about $4.86 to $5.04.

The S&P Capital IQ consensus normalized EPS estimate for 2017 is $4.98.

The company is scheduled to host an investor meeting Dec. 15.