Saturday, March 31, 2012

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%



Thursday, March 29, 2012

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%