: Centene boosts 2024 profit outlook after new Medi-Cal contracts from DHCS

Centene Corp. CNC raised on Tuesday the low end of its 2024 profit outlook, after the healthcare services provider announced new Medi-Cal direct contracts. The company said it raised its projected floor for 2024 adjusted earnings per share to $7.15; at Centene’s investor day on Dec. 16, the company said it targeted 2024 adjusted EPS of $7.00 to $7.50+. The FactSet 2024 EPS consensus is $7.34. Centene said its California subsidiary, Health Net of California, was selected by the California Department of Health Care Services (DHCS) for direct contracts in Los Angeles and Sacramento counties, with the new contracts expected to begin Jan. 1, 2024. That raises the number of counties that Health Net will price managed care services to 10 in 2024. The stock, which was still inactive in premarket trading, has edged up 2.5% over the past three months, while the SPDR Health Care Select Sector ETF XLV has rallied 9.9% and the S&P 500 SPX has tacked on 4.4%.

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