EmailCentene (CNC $25.) issues downside guidance for fiscal year 2012 with EPS of $1.45-1.65 versus the $2.68 Capital IQ Consensus and below the the previously announced range of $2.64-2.84 per diluted share. The revised guidance range reflects negative financial results in May for our Kentucky Health Plan and the Hidalgo service area in our Texas Health Plan, as well as in the Celtic individual health business.
Albeit at lower levels, the above items are anticipated to impact the financial results for the remainder of 2012, and the estimated impact is reflected in the revised guidance for 2012. The balance of company's products and markets continue to perform as expected. Centene currently estimates it will report a loss for the second quarter of 2012, but expects the Company to return to profitability in the third quarter of 2012. Higher than anticipated medical costs became evident at the end of the first week of June as part of the May closing process. The co is evaluating the goodwill and intangible assets of its Celtic business unit that may result in a non-cash impairment charge of approximately $28.0 million, which is currently not included in the revised guidance given above.
