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Molina Healthcare (MOH) Q1 Earnings Beat on Higher Premiums
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Molina Healthcare, Inc. (MOH - Free Report) reported first-quarter 2022 adjusted earnings of $4.90 per share, beating the Zacks Consensus Estimate of $4.74. Also, the bottom line increased from the year-ago earnings of $4.44 per share.
Total revenues of $7,770 million beat the consensus mark of $7,538 million. The top line also surged from the year-ago level of $6,522 million.
The strong first-quarter results were supported by increased membership and significant growth in premiums.
Molina Healthcare, Inc Price, Consensus and EPS Surprise
Premium revenues for the company increased to $7,531 million from $6,306 million a year ago on the back of positive impacts from acquisitions and organic membership growth in the Medicaid and Medicare lines of business.
Total operating expenses shot up to $7,398 million for the first quarter from $6,187 million a year ago, primarily due to higher medical care costs, general and administrative expenses as well as premium tax expenses. Molina Healthcare’s interest expenses declined 6.7% year over year to $28 million.
The company’s net income totaled $258 million, up from $228 million a year ago.
The medical care ratio (medical costs as a percentage of premium revenues) for the first quarter was 87.1%, up from 86.8% in the year-ago period due to the net effect of COVID.
Total membership at first quarter-end increased 10% year over year to 5.1 million, reflecting improving business.
Financial Update (as of Mar 31, 2022)
Molina Healthcare’s cash and cash equivalents rose to $4,804 million at first quarter-end from $4,438 million at fourth quarter-end. Total assets rose to $12,360 million from $12,209 million at December quarter-end.
Long-term debt at first quarter-end was $2,174 million, up sequentially from $2,173 million.
The company’s shareholder equity improved to $2,794 million from $2,630 million in the fourth quarter.
Net cash flow provided by operating activities was $363 million for the first quarter, up from $568 million a year ago due to timing differences in government receivables and payables. It was partially offset by higher net earnings.
Guidance
Molina Healthcare expects its 2022 business to witness reduced impacts from COVID. Strong Medicare and Medicaid performance will buoy results. Premium revenues for 2022 are now projected to be $29.25 billion, up from the previous projection of $28.5 billion, indicating a rise from the 2021 level of $26.9 billion. The Public Health Emergency has been extended from April to July, which positively impacted the guidance.
It expects net income for 2022 at $911 million. Adjusted earnings per share for 2022 are now expected to be higher than $17.10, improving from the previous guidance of more than $17, implying growth from $13.54 witnessed in 2021.
Prior Projections
Total revenues for 2022 are anticipated to be $29.5 billion, suggesting an increase from $27.8 billion in 2021. Total membership at 2022-end is anticipated at 4.5 million, pointing to a decline from the 2021 level of 5.2 million. Medical care ratio for 2022 is expected at 88%, calling for a decrease from 88.3% in 2021.
Other Companies Expected to Beat Estimates
Similar to Molina Healthcare, which currently carries a Zacks Rank #2 (Buy), here are three other companies from the Medical space that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this time around:
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Molina Healthcare (MOH) Q1 Earnings Beat on Higher Premiums
Molina Healthcare, Inc. (MOH - Free Report) reported first-quarter 2022 adjusted earnings of $4.90 per share, beating the Zacks Consensus Estimate of $4.74. Also, the bottom line increased from the year-ago earnings of $4.44 per share.
Total revenues of $7,770 million beat the consensus mark of $7,538 million. The top line also surged from the year-ago level of $6,522 million.
The strong first-quarter results were supported by increased membership and significant growth in premiums.
Molina Healthcare, Inc Price, Consensus and EPS Surprise
Molina Healthcare, Inc price-consensus-eps-surprise-chart | Molina Healthcare, Inc Quote
Operational Update
Premium revenues for the company increased to $7,531 million from $6,306 million a year ago on the back of positive impacts from acquisitions and organic membership growth in the Medicaid and Medicare lines of business.
Total operating expenses shot up to $7,398 million for the first quarter from $6,187 million a year ago, primarily due to higher medical care costs, general and administrative expenses as well as premium tax expenses. Molina Healthcare’s interest expenses declined 6.7% year over year to $28 million.
The company’s net income totaled $258 million, up from $228 million a year ago.
The medical care ratio (medical costs as a percentage of premium revenues) for the first quarter was 87.1%, up from 86.8% in the year-ago period due to the net effect of COVID.
Total membership at first quarter-end increased 10% year over year to 5.1 million, reflecting improving business.
Financial Update (as of Mar 31, 2022)
Molina Healthcare’s cash and cash equivalents rose to $4,804 million at first quarter-end from $4,438 million at fourth quarter-end. Total assets rose to $12,360 million from $12,209 million at December quarter-end.
Long-term debt at first quarter-end was $2,174 million, up sequentially from $2,173 million.
The company’s shareholder equity improved to $2,794 million from $2,630 million in the fourth quarter.
Net cash flow provided by operating activities was $363 million for the first quarter, up from $568 million a year ago due to timing differences in government receivables and payables. It was partially offset by higher net earnings.
Guidance
Molina Healthcare expects its 2022 business to witness reduced impacts from COVID. Strong Medicare and Medicaid performance will buoy results. Premium revenues for 2022 are now projected to be $29.25 billion, up from the previous projection of $28.5 billion, indicating a rise from the 2021 level of $26.9 billion. The Public Health Emergency has been extended from April to July, which positively impacted the guidance.
It expects net income for 2022 at $911 million. Adjusted earnings per share for 2022 are now expected to be higher than $17.10, improving from the previous guidance of more than $17, implying growth from $13.54 witnessed in 2021.
Prior Projections
Total revenues for 2022 are anticipated to be $29.5 billion, suggesting an increase from $27.8 billion in 2021. Total membership at 2022-end is anticipated at 4.5 million, pointing to a decline from the 2021 level of 5.2 million. Medical care ratio for 2022 is expected at 88%, calling for a decrease from 88.3% in 2021.
Other Companies Expected to Beat Estimates
Similar to Molina Healthcare, which currently carries a Zacks Rank #2 (Buy), here are three other companies from the Medical space that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this time around:
Alcon Inc. (ALC - Free Report) has an Earnings ESP of +10.04% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Alcon’s bottom line for the to-be-reported quarter is expected to rise 6.1% year over year.
Crinetics Pharmaceuticals, Inc. (CRNX - Free Report) has an Earnings ESP of +6.59% and is a Zacks #3 Ranked player.
Crinetics Pharmaceuticals’ earnings per share for the to-be-reported quarter are expected to jump 18.8% year over year.
FibroGen, Inc. (FGEN - Free Report) has an Earnings ESP of +40.33% and a Zacks Rank #3.
FibroGen beat the Zacks Consensus Estimate twice in the last four quarters and missed on the other two occasions, with an earnings surprise of 49.5%.