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Molina Healthcare (MOH) Q1 Earnings Miss Mark, Slip Y/Y

Zacks Equity Research

Molina Healthcare, Inc.’s MOH first-quarter 2020 adjusted earnings of $3.02 per share missed the Zacks Consensus Estimate by 0.3% due to escalating expenses. Moreover, the bottom line slid 0.7% year over year.

However, total revenues of $4.5 billion surpassed the consensus mark by 2.7%. The top line rose 10.4% year over year on the back of increased membership.

Quarterly Operational Update

The company’s net income totaled $178 million, down 10.1% year over year.

Total operating expenses increased 11.4% year over year to $4.2 billion.

This deterioration was due to higher medical care costs, depreciation and amortization.

Molina Healthcare’s interest expenses dropped 8.7% year over year to $21 million.

Total membership by Government Program at the end of first quarter stands at 3.4 billion, up 0.3% year over year.

Molina Healthcare, Inc Price, Consensus and EPS Surprise

Molina Healthcare, Inc Price, Consensus and EPS Surprise

Molina Healthcare, Inc price-consensus-eps-surprise-chart | Molina Healthcare, Inc Quote

Financial Update

As of Mar 31, 2020, Molina Healthcare’s cash and cash equivalents decreased 3.5% to $2.3 billion from the level at 2019 end.

Total assets rose 5% from the level at 2019 end to $7.1 billion.

The company’s shareholder equity declined nearly 16% from the figure at 2019 end to $1.6 billion.

For the first quarter, net cash flow from operating activities stands at $136 million, down 45.4% year over year.

Share Repurchase Update

Molina Healthcare completed its $500-million share repurchase program.

In the first quarter, it bought back shares worth $450 million.

2020 Guidance

Following first-quarter results, the company reaffirmed its full-year outlook.

It now expects earnings in the range of $11.20-$11.70 per share.

For the current year, the company anticipates total revenues to be $18.3 billion.

Zacks Rank and Performance of Other Players

Molina Healthcare carries a Zacks Rank #3 (Hold).  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Among other players from the medical sector that reported first-quarter results so far, the bottom-line results of Centene Corp. CNC and Anthem Inc. ANTM lagged the Zacks Consensus Estimate while that of Humana Inc. HUM beat the same.

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