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-eps-surprise-chart | Molina Healthcare, Inc Quote
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.
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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Humana Inc. (HUM) : Free Stock Analysis Report
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