December 12, 2019 / 10:42 PM / 4 months ago

Centene sees $500 million hit to 2020 revenue due to contract delay

(Reuters) - Health insurer Centene Corp (CNC.N) said on Thursday it expects an about $500 million hit to its full-year 2020 revenue due to a delay to its North Carolina Medicaid managed care contract.

The company’s shares fell 2.1% to $57.30 after the bell.

The start date for the contract has been pushed back by eight months to Oct. 1, 2020 and will also impact its 2020 profit by 6 cents, the company said.

Centene’s FY20 adjusted profit and revenue forecast is below Wall Street estimates. The company expects 2020 earnings between $4.64 and $4.84 per share, the midpoint of which is below analysts’ estimate of $4.84 per share, according to Refinitiv data.

Centene said it expects full-year revenue between $78.6 billion and $79.4 billion, short of estimates of $79.9 billion.

The company, which is hoping to close its purchase of smaller rival WellCare Health Plans WCG.N in the first half of 2020, said its 2020 forecast includes acquisition related expenses of $15 million to $25 million for legal and integration planning expenses.

Reporting by Dania Nadeem in Bengaluru; Editing by Shailesh Kuber

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below