U.S. Markets open in 3 hrs 27 mins
  • S&P Futures

    -47.75 (-1.41%)
  • Dow Futures

    -463.00 (-1.69%)
  • Nasdaq Futures

    -123.75 (-1.07%)
  • Russell 2000 Futures

    -31.40 (-1.98%)
  • Crude Oil

    -1.59 (-4.02%)
  • Gold

    -10.70 (-0.56%)
  • Silver

    -0.25 (-1.04%)

    -0.0042 (-0.3524%)
  • 10-Yr Bond

    0.0000 (0.00%)
  • Vix

    +3.99 (+12.29%)

    -0.0074 (-0.5680%)

    -0.3130 (-0.2995%)

    -114.89 (-0.84%)
  • CMC Crypto 200

    +6.45 (+2.47%)
  • FTSE 100

    -95.85 (-1.67%)
  • Nikkei 225

    -75.79 (-0.32%)

Molina Healthcare (MOH) Q2 Earnings Beat Estimates, Rise Y/Y

Zacks Equity Research
·3 mins read

Molina Healthcare, Inc.’s MOH second-quarter 2020 adjusted earnings of $4.79 per share beat the Zacks Consensus Estimate by 1.9%. Moreover, the bottom line soared 54% year over year on the back of higher revenues.

Total revenues of $4.6 billion missed the consensus mark by 1.7%.
However, the top line rose 10.1% year over year on increased membership.

Quarterly Operational Update

The company’s net income totaled $276 million, up 40.8% year over year.

Total operating expenses increased 6.8% year over year to $4.2 billion. This deterioration was due to higher medical care costs, premium tax expenses and health insurer fees.

Molina Healthcare’s interest expenses climbed 9.1% year over year to $24 million.

Total membership under Government Program at the end of the second quarter stands at 3.6 billion, up 5.5% year over year.

Molina Healthcare, Inc Price, Consensus and EPS Surprise

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 Jun 30, 2020, Molina Healthcare’s cash and cash equivalents surged 34.7% to $3.3 billion from the level at 2019 end.

Total assets rose 16% from the level at 2019 end to $7.8 billion.

The company’s shareholder equity improved nearly 1.8% from the figure at 2019 end to $1.9 billion.

As of Jun 30, 2020, net cash flow provided by operating activities stands at $749 million, up 380% year over year. This upside was owing to solid operating results and the normal fluctuations in timing of premium receipts and government payments.

Business Update

On Jul 1, the company closed the buyout of certain assets of YourCare Health Plan, Inc.

2020 and 2021 Guidance

Following second-quarter results, the company reaffirmed its outlook for the current year.

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

Molina Healthcare raised its 2020 total revenue guidance to $18.8 billion from the previous projection of $18.3 billion.

The company also announced 2021 premium outlook of $21.5 billion or 20% growth from the 2020 figure.

Zacks Rank

Molina Healthcare currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Medical Sector Releases

Of the medical sector players that already reported second-quarter results, earnings of UnitedHealth Group Inc. UNH, HCA Healthcare, Inc. HCA and Universal Health Services, Inc. UHS beat the Zacks Consensus Estimate.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
Universal Health Services, Inc. (UHS) : Free Stock Analysis Report
Molina Healthcare, Inc (MOH) : Free Stock Analysis Report
HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research