By Dean Seal

Centene Corp. is raising the low end of its adjusted earnings outlook for fiscal year 2024 after a California subsidiary was awarded Medi-Cal contracts from the state's healthcare-services department.

The St. Louis-based healthcare company said Tuesday that the California Department of Health Care Services has selected its subsidiary, Health Net of California, for Medi-Cal managed-care services in Los Angeles and Sacramento counties.

The new contracts start on Jan. 1, 2024, and bring the company's tally of direct county contracts across the state of California up to 10, the company said.

Centene said it is raising the low end of its 2024 adjusted earnings projection to $7.15 a share, up from $7, based on the new contracts.

The company said the bump also accounts for the Defense Health Agency's recent announcement about changes to the TriCare health insurance program, which supports members of the U.S. military. The Defense Health Agency said it would be awarding contracts to another carrier.

Centene did not provide the upper end of its adjusted earnings forecast range. A spokesperson for Centene did not immediately respond to a request for the full outlook.

The company said in December 2021 that it was targeting adjusted earnings in 2024 of $7.50 to $7.75 a share.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

January 03, 2023 08:11 ET (13:11 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.
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