Centene is a managed-care organization focused on government-sponsored healthcare plans, including Medicaid, Medicare, and the individual exchanges. Centene served 24 million medical members as of June 2023, mostly in Medicaid (67% of membership), the individual exchanges (14%), and Medicare Advantage (6%) plans. The company also serves traditional Medicare users with its Medicare Part D pharmaceutical program.

Management's ability to "raise guidance" can often be a catalyst for market-beating returns in the quarters ahead. The first-quarter earnings season has crossed the 90% mark and is wrapping up, with blended earnings (actual results and the consensus for those still to report) showing a year-over-year gain of almost 7%, according to Refinitiv. That is considerably better than the 4%-7% advance expected at the start of the earnings period. Leading the outperformance were strong gains in Communication Services earnings, up 43%, and Consumer Discretionary, up 26%. On the flipside, Healthcare and Energy, both down 24%, are performing the worst. Our analysts are always on the lookout for companies that boost outlooks during earnings season, as this is often a signal for momentum in the months ahead. Here is an initial list of BUY-rated companies in the Argus Fundamental Universe of Coverage at which management raised guidance or increased its outlook during the 1Q24 EPS reporting season.

In this edition, we assess exposure of some consumer finance banks; Compass Minerals puts its dividend on ice; Humana's stock pitch shows a rare opportunity; and Enel SpA, Warner Bros. Discovery, and Puma.

Centene is an international healthcare company. Based in St. Louis, Centene offers services to government-sponsored and commercial healthcare providers, with an emphasis on underinsured and uninsured individuals. It is the largest Medicaid managed care organization in the U.S. and a leading provider of insurance under the Affordable Care Act. Its Specialty Services segment provides a range of healthcare products and services to managed care members and other customers.