US Big Other Health Care Corps Annual 2011 Earnings Growth Modest and Decelerating

I made separate earlier posts on the Health Insurance Corps, the Drug Corps, and the Hospital and Health Care Services Corps.

In addition, there are 66 US Big Health Care Corps in other Health Care Sectors, which filed with the SEC, and which generated Pretax Income or Loss of more than $100 mil in any of the most recent three years.

These 66 US Health Care Corps generated Total Pretax Income in 2011 of $56.5 bil, up only 5% from 2010.  And this earnings growth was only half of the 10% earnings growth in 2010 over 2009.

When you review the list of these 66 Health Care Corps, you have to be impressed with the whole-scale exceptionally high quality.

There is something seriously wrong with the US economy when the Total Pretax Income growth in the most recent two years of the 80 largest US Big Oil Corps of 112% just crushes the 15% earnings growth of these fine 66 US Health Care Corps.  And by far the main driver of this 112% earnings growth of these US Big Oil Corps was simply substantially higher oil prices in the market, unfortunately driven in part by oil speculation. 

This modest earnings growth in 2011 was driven by most of the largest health care corps, as you can see in the below chart of earnings.

In deriving Pretax Income, I start with Pretax Income under Generally Accepted Accounting Principles (GAAP), and then exclude several clearly unusual very large items relative to Pretax Income, such as Special Legal Charges and Credits, Asset Impairments, Gains/Losses on Debt Retirements, and Gains/Losses on Asset Sales.

Just like the Health Insurance Corps, the Drug Corps, and the Hospitals and Healthcare Service Corps, these other Health Care Corps in Other Health Care sectors below will also be receiving huge economic benefits down the road in 2014 when the Affordable Healthcare Act totally kicks in, and their number of patients/customers served increase substantially.


Below here is the Pretax Income (PTI) of these 66 US Big Health Care Corps in Other Health Care sectors for each of the most recent three years.

				PTI	PTI
				%	%
				Change	Change
	PTI	PTI	PTI	2011	2010
	2011	2010	2009	vs	vs
	mils $s	mils $s	mils $s	2010	2009
Other Health Care
Retail Drug and Proprietary Stores
CVS Caremark	5,746	5,601	5,900	3%	-5%
Walgreens	3,860	3,373	3,164	14%	7%
MedcoHealthSolutions	2,376	2,334	2,103	2%	11%
Express Scripts	2,024	1,909	1,308	6%	46%
Omnicare	273	34	332	703%	-90%
Rite Aid	(546)	(480)	(773)	-14%	38%
Biological Products
Amgen	4,936	5,317	5,204	-7%	2%
Gilead Sciences	3,651	3,914	3,502	-7%	12%
Biogen IDEC	1,711	1,475	1,333	16%	11%
Life Technologies	479	442	195	8%	127%
Techne	307	261	280	18%	-7%
Myriad Genetics	180	37	(64)	386%	158%
PDL Biopharma	165	156	155	6%	1%
Momenta Pharm	160	141	136	13%	4%
Surgical&Medical Instruments
Baxter	2,809	2,590	2,734	8%	-5%
Stryker	2,216	1,926	1,807	15%	7%
Becton Dickinson	1,716	1,661	1,579	3%	5%
CR Bard	1,686	1,729	1,624	-2%	6%
Boston Scientifc	758	718	672	6%	7%
Covidien Ltd	630	465	714	35%	-35%
CareFusion	415	341	338	22%	1%
ResMed	304	261	202	16%	29%
Hill-Rom Holdings	207	162	94	28%	72%
Teleflex	164	155	164	6%	-5%
Haemonetics	145	147	140	-1%	5%
Gen Probe	110	97	85	13%	14%
ElectroMedical Apparatus
Medtronic	3,723	3,969	3,061	-6%	30%
St Jude Medical	1,019	1,209	1,057	-16%	14%
Varian Med Sys	589	533	475	11%	12%
Hologic	172	165	190	4%	-13%
Thoratec	112	93	43	20%	116%
Drug Wholesalers
McKesson	1,848	1,864	1,557	-1%	20%
Cardinal Health	1,518	1,212	1,160	25%	4%
AmerSourceBergen	1,131	1,028	824	10%	25%
Herbalife Ltd	560	380	291	47%	31%
Nu Skin Enterprises	227	208	141	9%	48%
Orthopedic Prosthetic Appliances
Zimmer Holdings	1,141	1,154	1,099	-1%	5%
Intuitive Surgical	710	572	396	24%	44%
EdwardsLifeSciences	284	268	217	6%	24%
Biomet	204	192	166	6%	16%
Steris	105	57	65	84%	-12%
MineSafetyApplcs	90	102	36	-12%	183%
Align Technology	(124)	(142)	(369)	13%	62%
Medical Research
Quest Diagnostics	1,092	1,184	1,228	-8%	-4%
LabCorpAmerica	866	916	885	-5%	4%
Covance	177	163	228	9%	-29%
CharlesRiverLabs	133	92	152	45%	-39%
Exelixis	77	(92)	(141)	184%	35%
Lab Analytical Instruments
Waters Corp	509	438	387	16%	13%
FEI Co	349	308	225	13%	37%
Bruker	236	220	186	7%	18%
PerkinElmer	213	176	125	21%	41%
Bio Rad Labs	146	150	129	-3%	16%
Mettler Toledo	124	58	17	114%	241%
Illumina	123	52	28	137%	86%
Coherent	64	166	100	-61%	66%
Misc Medical Equip&Supplies
Henry Schein	569	502	453	13%	11%
Dentsply	356	339	320	5%	6%
Patterson	256	358	363	-28%	-1%
Owens & Minor	209	124	115	69%	8%
PSS World Medical	190	182	188	4%	-3%
II-VI Inc	119	110	84	8%	31%
Cooper Cos	102	51	46	100%	11%
Misc Health Care
Weight Watchers	483	313	290	54%	8%
Idexx Lab	234	202	175	16%	15%
AllscriptsHCSols	117	104	44	13%	136%
Total all 66	56,535	53,746	48,964	5%	10%

US Big Hospital Corps Annual 2011 Earnings Growth Fair Under Affordable HealthCare Act

There are 18 US Big Hospital and Healthcare Services Corps, which file with the SEC, and which generated Pretax Income of more than $100 mil in any of the most recent three years.

The one that dominates is Nashville, TN-based giant HCA.

These 18 US Big Hospital and Healthcare Services Corps generated Total Pretax Income of $7.8 bil in 2011, which resulted in a solid, but fair, earnings growth of 12% in 2011 over 2010, and of 25% for the two years from 2009 to 2011.

In deriving Pretax Income, I start with Pretax Income under Generally Accepted Accounting Principles (GAAP), and then exclude several clearly unusual very large items relative to Pretax Income, such as Special Legal Charges and Credits, Asset Impairments, Gains/Losses on Debt Retirements, and Gains/Losses on Asset Sales.

Just like the Health Insurance Corps, these Hospitals and Healthcare Service Corps will be receiving huge economic benefits down the road in 2014 when the Affordable Healthcare Act totally kicks in, and their number of patients/customers served increase substantially.


Below here is the Pretax Income (PTI) of these 18 US Big Hospital and Healthcare Services Corps for each of the most recent three years.

					Obama
					Bump
				PTI	PTI
				1 Year	2 Year
	PTI	PTI	PTI	%	%
	2011	2010	2009	Change	Change
	mils $s	mils $s	mils $s
Hospitals and Health Services
HCA	2,520	2,231	2,002	13%	26%
DaVita	893	818	758	9%	18%
Universal Health Svcs	696	481	475	45%	47%
Communy Health Sys	540	519	448	4%	21%
Mednax	353	311	288	14%	23%
Health Mgt Associates	337	287	228	17%	48%
Lincare Holdings	290	298	223	-3%	30%
Healthsouth	282	190	145	48%	94%
Tenet Healthcare	278	215	108	29%	157%
LifePoint Hospitals	263	241	222	9%	18%
Amsurg	227	213	211	7%	8%
Select Medical	215	124	102	73%	111%
VCA Antech	197	192	220	3%	-10%
Magellan Health Svcs	195	222	164	-12%	19%
UnitedSurgicalPartners	183	142	160	29%	14%
Chemed	141	134	121	5%	17%
Amedisys	101	203	229	-50%	-56%
Iasis Healthcare	95	121	131	-21%	-27%
Total all 18	7,806	6,942	6,235	12%	25%

US Big Pharma Corps Annual 2011 Earnings Growth Fair Under Affordable HealthCare Act

There are 6 Pharmaceutical Corps which dominate in the US.  These 6 US Big Pharma Corps generated Total Pretax Income of $59.9 bil in 2011, which resulted in a solid, but fair, earnings growth of 12% in 2011 over 2010, and of 23% for the two years from 2009 to 2011.

There are 20 other US drug companies with Pretax Income or Loss of more than $100 mil in any of the most recent three years.  These 20 companies generated Total Pretax Income of $8.8 bil in 2011, which was up a spectacular 43% in 2011 over 2010, and of another spectacular 85% for the two years from 2009 to 2011.

I think that this is where the US economy should be, where smaller drug companies generate very robust earnings growth, substantially higher than that of the dominant US Big 6 Pharma.

In deriving Pretax Income, I start with Pretax Income under Generally Accepted Accounting Principles (GAAP), and then exclude several clearly unusual very large items relative to Pretax Income, such as Special Legal Charges and Credits, Asset Impairments, and Gains/Losses on Asset Sales.

Below here is the Pretax Income or Loss (PTI) of these 6 US Big Pharma Corps and 20 US Other Large Drug Corps for each of the most recent three years.

					Obama
					Bump
				PTI	PTI
				1 Year	2 Year
	PTI	PTI	PTI	%	%
	2011	2010	2009	Change	Change
	mils $s	mils $s	mils $s
Big Pharma
JNJ	16,683	16,830	15,369	-1%	9%
Pfizer	14,438	13,136	10,780	10%	34%
Merck	8,276	4,601	4,598	80%	80%
Abbott Labs	7,372	6,026	6,280	22%	17%
BristolMyersSquibb	6,981	6,071	5,602	15%	25%
Eli Lilly	6,139	6,767	6,141	-9%	0%
Total all 6	59,889	53,431	48,770	12%	23%
Other Large Drug Corps
Celgene	1,524	1,134	976	34%	56%
Forest Labs	1,338	951	971	41%	38%
Allergan	1,300	1,149	849	13%	53%
Mylan Labs	704	483	453	46%	55%
Watson Pharma	535	282	363	90%	47%
Endo Pharma	468	456	336	3%	39%
Perrigo	451	309	206	46%	119%
Hospira	373	379	384	-2%	-3%
Warner Chilcott	300	307	166	-2%	81%
United Therap	299	155	19	93%	1474%
AlexionPharma	230	149	83	54%	177%
Viropharma	208	201	86	3%	142%
Cubist Pharma	197	154	120	28%	64%
MedicisPharm	183	249	166	-27%	10%
Par Pharma	139	135	126	3%	10%
Jazz Pharma	125	33	(7)	279%	1886%
Questcor Pharma	114	54	42	111%	171%
Salix Pharma	113	11	(46)	927%	346%
Impax Labs	98	293	71	-67%	38%
Vertex Pharma	60	(755)	(642)	108%	109%
Total all 20	8,759	6,129	4,722	43%	85%

US Big Health Insurance Corps Annual 2011 Earnings Growth Decelerate Under Affordable HealthCare Act

During the entire Bush/Cheney Presidency, the earnings of US Big Health Insurance Corps increased dramatically, contributing to the substantial upturn in the country's health care cost curve.

So, what happened during the Obama/Biden Presidency?

Well, before the new Affordable Care Act (ACA) passed, this robust earnings growth continued.

But since the provisions of ACA have started to begin to kick in, there has been a dramatic drop in this robust earnings growth.  Let me explain in more detail.

There are 5 Health Insurance Corps which dominate in the US:

UnitedHealth Group...UNH
WellPoint..................WLP
Aetna........................AET
Humana....................HUM
Cigna........................CI

And then there are 6 other ones which had Pretax Income of more than $100 mil in any of the most recent three years:

Coventry Health Care...COV
WellCare Health..........WCH
Amerigroup..................AG
Centene.......................CNT
Health Net...................HN
Molina Healthcare.......MH


The Big 5 Health Insurance Corps comprised a massive 91% of the total 2011 Pretax Income of all 11 of these insurance companies.

These Big 5 Health Insurance Corps had their Total Pretax Income increase from $12.0 bil in 2008 to $19.4 bil in 2011, an increase of a very robust 62%.

But to get to the real story here, you need to break down this earnings increase by year.

Before the new ACA began to start kicking in, these Big 5 Health Insurance Corps had their total Pretax Income increase by 23% in 2009 and by another 22% in 2010.

Then in 2011, the new ACA started to kick in and what happened?

The total Pretax Income growth in 2011 for these Big 5 increased by a much lower 8%.

And there was a similar result for the 6 other insurance corps.  Thus, the total Pretax Income growth for all 11 of these Big Health Insurance Corps declined from 25% in 2010 to only 6% in 2011.


In deriving Pretax Income, I start with Pretax Income under Generally Accepted Accounting Principles (GAAP), and then exclude several clearly unusual very large items relative to Pretax Income, such as Special Legal Charges and Credits, Asset Impairments, Gains/Losses on Asset Sales, and Cigna's GMIB Fair Value Gains and Losses.

Clearly, with the ACA, the Obama Administration has started to make a major impact in reducing the country's health care costs.


Below here is the Pretax Income or Loss (PTI) of these 11 US Big Health Insurance Corps for each of the most recent three or four years. 

					1 Year	3 Year
					%	%
					Change	Increase
	PTI	PTI	PTI	PTI	2010 to	2008 to
	2011	2010	2009	2008	2011	2011
	mil $s	mil $s	mil $s	mil $s
Big 5
UNH	7,959	7,383	5,808	4,624	8%	72%
WLP	3,958	4,354	3,874	3,122	-9%	27%
AET	3,078	2,644	1,901	2,174	16%	42%
HUM	2,235	1,749	1,602	993	28%	125%
CI	2,204	1,925	1,594	1,072	14%	106%
Total Big 5	19,434	18,055	14,779	11,985	8%	62%
% Annual
..Change	8%	22%	23%
COV	699	965	505		-28%
WCH	418	193	198		117%
AG	310	437	201		-29%
CNT	175	154	138		14%
HN	138	289	256		-52%
MH	130	89	38		46%
Total 6 Rest	1,870	2,127	1,336		-12%
Total all 11	21,304	20,182	16,115		6%
% Annual
..Change	6%	25%

US Big Technology Annual 2011 Earnings On Fire Under Obama

US Big Technology Corp earnings have rocketed under the Obama Administration.

For the most recent fiscal year ended 2011, the 102 US Big Technology Corps, with Total Pretax Income or Loss of more than $200 mil for any of the most recent three years, had their Total Pretax Income increase by 17% over 2010, and by an exceptionally strong 73% over 2009.

In deriving Pretax Income, I start with Pretax Income under Generally Accepted Accounting Principles (GAAP), and then exclude several clearly unusual very large items relative to Pretax Income, such as Intangible Asset Impairments, and Gains/Losses on Asset Sales.

Clearly, the Obama Administration has created a US economic environment which has permitted these US Big Technology Corps to flat out thrive.

The only downside here is that the earnings growth of this key US Technology sector of 17% in 2011 over 2010, and of a much lower 9% excluding Apple, fell substantially short of that of the US Big Oil sector, whose earnings grew by a much higher 39% in 2011 over 2010.

Below here is the Pretax Income or Loss (PTI) of these 102 US Big Technology Corps for each of the most recent three years. 

					Obama
					Bump
				PTI	PTI
				1 Year	2 Year
	PTI	PTI	PTI	%	%
	2011	2010	2009	Change	Change
	mils $s	mils $s	mils $s
Technology
Apple	34,205	18,540	12,066	84%	183%
Microsoft	28,071	25,013	19,821	12%	42%
IBM	21,003	19,723	18,138	6%	16%
Intel	17,781	16,045	8,401	11%	112%
Google	12,326	10,796	8,381	14%	47%
Oracle	11,411	8,243	7,834	38%	46%
Hewlett Packard	10,898	10,974	9,415	-1%	16%
Cisco Systems	7,825	9,415	7,693	-17%	2%
Qualcomm	5,687	4,493	3,416	27%	66%
Dell	4,240	3,350	2,024	27%	109%
Accenture	3,512	2,914	2,678	21%	31%
EMC	3,249	2,608	1,375	25%	136%
Texas Instruments	2,955	4,551	2,017	-35%	47%
Applied Materials	2,378	1,387	(486)	71%	589%
Ebay	2,246	2,098	1,472	7%	53%
AutomatDataProc	1,933	1,863	1,900	4%	2%
TE Connectivity	1,629	1,558	(123)	5%	1424%
Xerox	1,565	815	627	92%	150%
Sandisk	1,477	1,457	504	1%	193%
Priceline	1,368	746	442	83%	210%
Activision Blizz	1,331	818	401	63%	232%
CA	1,209	1,152	1,049	5%	15%
Cognizant Tech	1,169	879	637	33%	84%
ThermoFshScien	1,127	1,106	880	2%	28%
KLA Tencor	1,110	291	(156)	281%	812%
Analog Devices	1,061	902	297	18%	257%
Adobe Systems	1,035	943	702	10%	47%
Agilent Technol	1,032	560	7	84%	14643%
CSC	968	1,022	950	-5%	2%
Intuit	966	815	653	19%	48%
Broadcom	956	1,097	190	-13%	403%
Amazon.com	934	1,497	1,161	-38%	-20%
Harris Corp	881	840	741	5%	19%
Altera	849	868	306	-2%	177%
Yahoo	828	818	574	1%	44%
Lam Research	801	430	(167)	86%	580%
VMWare	794	416	223	91%	256%
NetApp	794	447	137	78%	480%
Paychex	792	729	704	9%	13%
Western Digital	780	1,520	501	-49%	56%
Xilinx	771	422	458	83%	68%
SAIC	747	872	768	-14%	-3%
Motorola Solutions	738	664	633	11%	17%
Symantec	729	865	869	-16%	-16%
Linear Technol	724	490	369	48%	96%
CheckpointSftwre	683	564	446	21%	53%
Nvidia	663	214	(82)	210%	909%
MaximIntegrProd	662	300	86	121%	670%
Marvell Technol	619	910	343	-32%	80%
Flextronics	616	182	(180)	238%	442%
Roper Industries	605	448	340	35%	78%
Garmin Ltd	584	577	809	1%	-28%
Seagate Technol	579	1,569	(494)	-63%	217%
JuniperNetworks	572	778	494	-26%	16%
Micron Technol	551	1,483	(1,852)	-63%	130%
BMC Software	531	504	414	5%	28%
Jabil Circuit	481	247	18	95%	2572%
Teradata	481	414	334	16%	44%
Cerner	470	362	293	30%	60%
Microchip Tech	461	238	232	94%	99%
VeriskAnalytics	460	407	265	13%	74%
Citrix Systems	430	334	194	29%	122%
Lexmark	414	422	187	-2%	121%
NatlSemiCndctr	403	269	114	50%	254%
Expedia	402	426	320	-6%	26%
Ingram Micro	388	438	269	-11%	44%
Amdocs	385	366	418	5%	-8%
Atmel	381	116	(56)	228%	780%
Autodesk	363	272	106	33%	242%
F5 Networks	361	238	132	52%	173%
Netflix	360	268	192	34%	88%
First Solar	339	762	686	-56%	-51%
Freescale Semi	339	762	686	-56%	-51%
Vishay Intertech	331	406	(40)	-18%	928%
Tech Data	323	304	235	6%	37%
FLIR Systems	311	363	340	-14%	-9%
Akamai Tech	307	262	237	17%	30%
Skyworks Sol	294	195	70	51%	320%
NovellusSystems	293	305	(69)	-4%	525%
TripAdvisor	272	224	167	21%	63%
GTAdvancdTech	271	140	142	94%	91%
Ansys	265	216	174	23%	52%
Synnex	230	184	135	25%	70%
CACI Intl	228	168	153	36%	49%
Synopsys	219	199	233	10%	-6%
Teledyne Tech	212	174	166	22%	28%
MICROS Syst	210	168	147	25%	43%
Adv Micro Dev	208	363	(1,003)	-43%	121%
Jack Henry	208	181	157	15%	32%
Unisys	206	223	218	-8%	-6%
Power One	196	250	0	-22%	NM
Cree	178	205	40	-13%	345%
Compuware	155	157	213	-1%	-27%
ON Semicndctor	124	306	71	-59%	75%
RF Micro Dev	124	85	(260)	46%	148%
Amkor Technol	116	251	112	-54%	4%
AOL	42	339	460	-88%	-91%
THQ	(135)	(12)	(268)	-1025%	50%
Motorola Mobility	(148)	(287)	(1,335)	48%	89%
Groupon	(231)	(217)	(1)	-6%	-23000%
Electronic Arts	(279)	(706)	(487)	60%	43%
MEMCElectrMtls	(479)	(13)	(100)	-3585%	-379%
Total all 102	216,519	185,355	125,103	17%	73%
Total all 101
…without Apple	182,314	166,815	113,037	9%	61%