U.S. Markets closed

Molina (MOH) Q1 Earnings and Revenues Surpass Estimates

Zacks Equity Research

Molina Healthcare, Inc.’s MOH first-quarter 2019 adjusted earnings of $3.04 per share surpassed the Zacks Consensus Estimate of $2.41 by a whopping 26.1%. This upside was driven by decreasing expenses. Moreover, the bottom line also soared 77.8% year over year.

Further, for the quarter under review, total revenues came in at $4.1 billion, beating the Zacks Consensus Estimate by 1.1%. However, the top line declined 11.3% year over year due to lower membership.

Molina Healthcare, Inc Price, Consensus and EPS Surprise

Molina Healthcare, Inc Price, Consensus and EPS Surprise | Molina Healthcare, Inc Quote

Quarterly Operational Update


The company’s net income totaled $308 million, up 25.2% year over year.

Total operating expenses fell about 13.2% year over year to $3.8 billion. This improvement was attributable to lower medical care costs and general and administrative costs.

For the first quarter, medical care cost was down 3.4% year over year to nearly $3.4 billion.

Molina Healthcare’s interest expenses were down 30.3% year over year to $23 million.

Total membership of the Government Program for 2019 stands at 3.4 billion, down 16.4% year over year.

Financial Update

As of Mar 31, 2019, Molina Healthcare’s cash and cash equivalents saw a reduction of 14.1% to $3.2billion from the level at year-end 2018.

Total assets rose 5.9% from 2018 end to $7.6 billion.

The company’s shareholder equity improved nearly 11.4% from the figure at year-end 2018 to $1.8 billion.

For the fourth quarter, net cash flow from operating activities stands at $249 million, lower than the net cash flow of $394 million as of Dec 31, 2018.

2019 Guidance

For 2019, the company expects its premium revenues to be $15.9 billion, up from the initial guidance of $15.8 billion.

Its total revenues are projected at $16.4 billion, higher than the previous expectation of $16.3 billion.

Moreover, Medicare costs are now expected to be $13.6 billion, down from the previous forecast of $13.7 billion. General and administrative expenses are anticipated at $1.3 billion, more from the previous estimate of $1.2 billion.

Net income of the company is predicted in the band of $680-$710 million, up from the prior guided range of $600-$630 million. EBITDA is projected in the $1080-$1120 million bracket, up from the previous expectation of $975-$1025 million.

Net income per share is assumed to be $10.50-$11.00, up from the former outlook of $9.25-$9.75.

Medicaid and Medicare membership is forecast to be around 3.1 million whereas Marketplace membership is estimated to be around 270000-280000, up from the preceding expectations of 3.2 million and 250000-270000, respectively. .

Zacks Rank and Performance of Other Players

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

Among other players from the HMO industry having reported first-quarter earnings so far, the bottom-line results of Anthem Inc. ANTM, Centene Corporation CNC  and UnitedHealth Group Inc. UNH beat the respective Zacks Consensus Estimate.

Is Your Investment Advisor Fumbling Your Financial Future?

See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.”

Click to get it free >>

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
Centene Corporation (CNC) : Free Stock Analysis Report
Molina Healthcare, Inc (MOH) : Free Stock Analysis Report
Anthem, Inc. (ANTM) : Free Stock Analysis Report
UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research