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Molina Healthcare (MOH) Q3 Earnings Surpass, Increase Y/Y

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Molina Healthcare, Inc.’s (MOH - Free Report) third-quarter 2019 adjusted earnings of $2.80 per share surpassed the Zacks Consensus Estimate by 3.3%.

Moreover, the bottom line improved 2.9% year over year, mainly owing to lower expenses.

Also, for the quarter under review, total revenues of $4.2 billion came ahead of the Zacks Consensus Estimate by 2.9%. However, the top line declined 9.7% year over year, mainly due to lower Medicaid membership.

Quarterly Operational Update

The company’s net income totaled $175 million, down 11.2% year over year.
Total operating expenses decreased about 10.2% year over year to $3.9 billion. This improvement was attributable to lower medical care costs and no health insurer fees as well as cost of service revenues.

For the third quarter, medical care cost was down 7% year over year to nearly $3.5 billion.

Molina Healthcare’s interest expenses dropped 15.4% year over year to $22 million owing to constant repayment of convertible notes.

Total membership by Government Program for 2019 stands at 3.3 billion, down 16.3% year over year.

During the third quarter, Molina Healthcare received $430 million of dividends from regulated health plan subsidiaries.

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 Sep 30, 2019, Molina Healthcare’s cash and cash equivalents saw a reduction of 5.2% to $2.7 billion from the level at 2018 end.

Total assets fell 6.3% from 2018 end to $6.7 billion.

The company’s shareholder equity improved nearly 11.2% from the figure at 2018 end to $1.8 billion.

For the first nine months of of 2019, net cash outflow from operating activities stands at $398 million.

2019 Guidance

Following third-quarter results, the company hiked its 2019 outlook. It now expects earnings in the range of $11.30-$11.55 per share, indicating a rise from the prior estimate of $11.20-$11.50.

Zacks Rank

Molina Healthcare carries a Zacks Rank #3 (Hold).  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Releases From the Medical Sector

Among other players from the medical sector having already reported third-quarter earnings, the bottom-line results of UnitedHealth Group Incorporated (UNH - Free Report) , Anthem Inc. and Centene Corporation (CNC - Free Report) topped the respective Zacks Consensus Estimate.

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