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What's in Store for Molina Healthcare (MOH) Q3 Earnings?

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Molina Healthcare, Inc (MOH - Free Report) is scheduled to report third-quarter 2019 results on Oct 29.

The Zacks Consensus Estimate for earnings is pegged at $2.71, indicating a 0.4% dip from the year-ago reported figure. The consensus mark for total revenues stands at $4.1 billion, suggesting a 12.2% drop from the prior-year reported number.

In the last reported quarter, the company delivered adjusted earnings of $3.11, beating the Zacks Consensus Estimate by 21.5%. Moreover, the bottom line improved 38% year over year, mainly on lower expenses and accretion from Meridian buyout.

Its surprise history is impressive, beating estimates in all the trailing four quarters, the average being 66.9%.

What to Expect for Q3 Earnings

The company expects third-quarter results to reflect numbers little less than half the earnings for the second half of the year, mainly due to investment made to improve profits.

Softer revenues are likely to have dampened its overall performance as well.
Molina Healthcare’s top-line is likely to have witnessed a decline due to lower Medicaid membership and loss of contracts.

Nonetheless, we expect that the company might have retained the growth momentum in its marketplace business from the second quarter of 2019.

The company’s medical costs are expected to have been stable as well.

Molina Healthcare is likely to have benefited from attractive cash-flow generation in the third quarter owing to its solid balance sheet.

The company is expected to have incurred high interest expenses in the third quarter of 2019, which increases its financial risk.

What the Quantitative Model Predicts

Our proven model predicts an earnings beat for Molina Healthcare this reporting cycle. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Earnings ESP: Molina Healthcare has an Earnings ESP of +0.92%. This is because the Most Accurate Estimate is pegged at $2.73, higher than the Zacks Consensus Estimate of $2.71. You can see the complete list of today’s Zacks #1 Rank stocks here.

Molina Healthcare, Inc Price and EPS Surprise

Molina Healthcare, Inc Price and EPS Surprise

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

Zacks Rank: Molina Healthcare carries a Zacks Rank #3. Further, a positive ESP increases the odds of a positive surprise this earnings season.

Other Stocks to Consider

Some other stocks worth considering from the medical sector with the perfect mix of elements to also surpass estimates in the next releases are as follows:

Mednax, Inc (MD - Free Report) is set to report third-quarter earnings on Nov 1. The stock has a Zacks Rank of 3 and an Earnings ESP of +1.10%.

AmerisourceBergen Corporation is slated to announce third-quarter earnings on Nov 7. The stock has an Earnings ESP of +0.55% and is Zacks #3 Ranked.

Acadia Healthcare Company, Inc. (ACHC - Free Report) is set to report third-quarter earnings on Nov 5. The stock is Zacks #3 Ranked and an Earnings ESP of +1.34%.

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