Molina Healthcare EPS Beats Estimates, Revenue Soars

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Molina Healthcare EPS Beats Estimates, Revenue Soars
Credit: © Reuters.

LONG BEACH, Calif. - Molina Healthcare, Inc. (NYSE: NYSE: MOH ) announced its first quarter 2024 financial results, surpassing analyst expectations for adjusted earnings per share (EPS) and reporting a significant increase in revenue. The company reported an adjusted EPS of $5.73, slightly higher than the analyst estimate of $5.69. Total revenue for the quarter reached $9.93 billion, exceeding the consensus estimate of $9.44 billion and marking a substantial 21% increase from the $7.885 billion reported in the same quarter last year.

The company's GAAP net income for the first quarter was $5.17 per diluted share, a decrease of 6% year-over-year (YoY), while the adjusted net income showed a marginal decrease of 1% YoY. Despite the decline in net income, the company's premium revenue growth, driven by new contract wins, acquisitions, and expansion, contributed to the overall positive financial performance.

Molina Healthcare's President and CEO, Joseph Zubretsky, expressed satisfaction with the company's first quarter results, highlighting strong financial performance and the maintenance of profitable growth aligned with long-term targets. "We delivered strong financial performance supported by excellent operating metrics across our business," stated Zubretsky.

The company also reaffirmed its full year 2024 guidance, expecting premium revenue to be approximately $38 billion and adjusted earnings of at least $23.50 per diluted share. This guidance indicates a continuation of the company's growth trajectory, with a predicted 17% increase in premium revenue from the full year 2023 and a 13% growth in adjusted EPS.

Molina Healthcare's stock remained unchanged following the earnings release, indicating a neutral market response. The company's solid financial performance and EPS beat were key factors in maintaining investor confidence, despite the flat market movement.

The company's medical care ratio (MCR) for the first quarter was 88.5%, reflecting strong medical cost management and growth across all segments. The Medicaid MCR was 89.7%, the Medicare MCR was 88.7%, and the Marketplace MCR was 73.3%, all in line with the company's expectations.

Molina Healthcare continues to focus on its managed healthcare services provided under the Medicaid and Medicare programs and through state insurance marketplaces. As it moves forward, the company remains committed to leveraging its strategic initiatives to sustain growth and deliver value to its members and shareholders.

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