On Feb. 6, health-care enterprise Centene
- Revenue grew by nearly 65%, largely thanks to a 44% increase in membership.
- Operating margin decreased by 210 basis points because of higher general and administrative expenses as a percent of revenues for the Medicaid managed-care segment.
- Earnings per share were flat at $0.31 because of a marginal decrease in net profit, offset by a decrease in the number of shares.
- The company made stock repurchases of $7.8 million during 2006.
- The company expects fiscal 2007 revenues to be in the range of $2.7 billion to $2.8 billion and EPS to be $1.51 to $1.61 per share. In the first quarter, the company expects revenue between $635 million and $645 million and EPS between $0.24 and $0.27.
(Figures in millions, except per-share data)
Income Statement Highlights
Q4 2006 |
Q4 2005 |
Change |
|
---|---|---|---|
Sales |
$697.4 |
$423.2 |
64.8% |
Net Profit |
$13.8 |
$13.9 |
(0.2%) |
EPS |
$0.31 |
$0.31 |
0.0% |
Diluted Shares |
44.6 |
44.8 |
(0.4%) |
Get back to basics with a look at the income statement.
Margin Checkup
Q4 2006 |
Q4 2005 |
Change* |
|
---|---|---|---|
Gross Margin |
18.0% |
17.7% |
0.2 |
Operating Margin |
2.7% |
4.8% |
(2.1) |
Net Margin |
2.0% |
3.3% |
(1.3) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Cash + ST Invest. |
$338.0 |
$204.1 |
65.6% |
Accounts Rec. |
$91.7 |
$44.1 |
107.8% |
Inventory |
No Data |
No Data |
No Data |
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Accounts Payable* |
$72.7 |
$29.8 |
144.1% |
Long-Term Debt |
$174.6 |
$92.4 |
88.9% |
Learn the ways of the balance sheet.
Cash Flow Highlights
YTD 2006 |
YTD 2005 |
Change |
|
---|---|---|---|
Cash From Ops. |
$195.0 |
$74.0 |
163.4% |
Capital Expenditures |
$50.3 |
$26.9 |
87.0% |
Free Cash Flow |
$144.7 |
$47.1 |
207.0% |
Find out why Fools always follow the money.
Related Companies:
-
HealthSpring
(NYSE:HS) -
UnitedHealth Group
(NYSE:UNH) -
Aetna
(NYSE:AET) -
Wellcare Health
(NYSE:WCG) -
Amerigroup
(NYSE:AGP)
Related Foolishness:
- 2006 in Review: WellCare Health Plans
- Aetna Airs It Out in the Third Quarter
- 2006 in Review: UnitedHealth Group
UnitedHealth is a recommendation of both Inside Value and Stock Advisor. You can find out why with a 30-day free trial of either newsletter.
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