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Molina Healthcare (MOH) to Post Q3 Earnings: What to Expect
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Molina Healthcare, Inc. (MOH - Free Report) is scheduled to release third-quarter 2022 results on Oct 26, after the closing bell.
Q3 Estimates
The Zacks Consensus Estimate for Molina Healthcare’s third-quarter earnings per share (EPS) is pegged at $4.25, which indicates a surge of 50.2% from the prior-year quarter’s reported figure. Our estimate suggests an EPS of $4.22 for the to-be-reported quarter.
The consensus mark for revenues stands at $7.8 billion, suggesting 10.5% growth from the year-ago quarter’s reported number.
Earnings Surprise History
Molina Healthcare boasts an impressive earnings surprise history. Its bottom line beat estimates in each of the trailing four quarters, the average being 3.22%. This is depicted in the chart below:
In the third quarter, Molina Healthcare’s revenues are expected to have gained on improved premiums owing to solid membership growth in its Medicaid business. Numerous contract wins from state authorities are also likely to have contributed to MOH’s top-line growth.
The Zacks Consensus Estimate for premium revenues is pegged at $7.6 billion, which indicates an improvement of 12.2% from the prior-year quarter’s reported figure. Our estimate for the metric is $7.5 billion. The consensus mark for total ending membership suggests 2% growth from the prior-year quarter’s reported figure.
Two other revenue components, namely investment income and other revenue, are expected to have witnessed an increase in the to-be-reported quarter, though their contribution remains meagre to the overall revenues of MOH. Investment income is likely to have registered an uptick, courtesy of growing interest rates. The Zacks Consensus Estimate for investment income and other revenue stands at $38.4 million, indicating a rise of 6.6% from the year-ago quarter’s reported number.
Molina Healthcare’s Medicaid business, accounting for a major chunk of its overall revenues followed by Medicare and Marketplace businesses, is expected to have been driven by benefits from acquisitions, state contract wins, and strength exhibited by D-SNP and MAPD products. While the Medicare business is likely to have gained from a favorable rate environment and an aging U.S. population, results of the Marketplace business are expected to reflect a recovery phase for the third quarter.
Solid medical cost-management efforts and a reduction in COVID costs are likely to have led to a reduction in the Medical Care Ratio (MCR) of Molina Healthcare. The consensus mark for the same is pegged at 88%, indicating an improvement of 100 basis points from the year-ago quarter’s reported figure. A lower MCR ratio indicates more premiums left in the insurer's hands even after paying customers' insurance claims.
However, the margins of Molina Healthcare might have suffered a blow in the third quarter due to an escalation in general and administrative expenses, and premium tax expenses.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Molina Healthcare this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here, as you see below.
Earnings ESP: Molina Healthcare has an Earnings ESP of -1.37% because the Most Accurate Estimate of $4.19 is pegged lower than the Zacks Consensus Estimate of $4.25. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
While an earnings beat looks uncertain for Molina Healthcare, here are some companies from the Medical space that you may want to consider, as our model shows that these have the right combination of elements to beat on earnings this time around:
Jazz Pharmaceuticals plc (JAZZ - Free Report) has an Earnings ESP of +0.53% and a Zacks Rank of 1, currently. The Zacks Consensus Estimate for JAZZ’s third-quarter 2022 earnings is pegged at $4.74 per share, indicating a rise of 12.9% from the prior-year quarter’s reported figure.
Jazz Pharmaceuticals’ earnings outpaced estimates in three of the trailing four quarters and missed the mark once, the average surprise being 10.94%.
Lantheus Holdings, Inc. (LNTH - Free Report) has an Earnings ESP of +3.03% and a Zacks Rank of 2, currently. The Zacks Consensus Estimate for LNTH’s third-quarter 2022 earnings is pegged at 83 cents per share, indicating an increase to more than 10-fold from the year-ago quarter’s reported figure.
Lantheus' bottom line beat estimates in each of the trailing four quarters, the average surprise being 54.60%.
Abiomed, Inc. has an Earnings ESP of +4.18% and a Zacks Rank #3, currently. The Zacks Consensus Estimate for ABMD’s third-quarter 2022 earnings is pegged at $1.04 per share, indicating a 1% increase from the prior-year quarter’s reported figure.
Abiomed’s earnings beat estimates in each of the trailing four quarters, the average surprise being 10.89%.
Image: Bigstock
Molina Healthcare (MOH) to Post Q3 Earnings: What to Expect
Molina Healthcare, Inc. (MOH - Free Report) is scheduled to release third-quarter 2022 results on Oct 26, after the closing bell.
Q3 Estimates
The Zacks Consensus Estimate for Molina Healthcare’s third-quarter earnings per share (EPS) is pegged at $4.25, which indicates a surge of 50.2% from the prior-year quarter’s reported figure. Our estimate suggests an EPS of $4.22 for the to-be-reported quarter.
The consensus mark for revenues stands at $7.8 billion, suggesting 10.5% growth from the year-ago quarter’s reported number.
Earnings Surprise History
Molina Healthcare boasts an impressive earnings surprise history. Its bottom line beat estimates in each of the trailing four quarters, the average being 3.22%. This is depicted in the chart below:
Molina Healthcare, Inc Price and EPS Surprise
Molina Healthcare, Inc price-eps-surprise | Molina Healthcare, Inc Quote
Factors to Note
In the third quarter, Molina Healthcare’s revenues are expected to have gained on improved premiums owing to solid membership growth in its Medicaid business. Numerous contract wins from state authorities are also likely to have contributed to MOH’s top-line growth.
The Zacks Consensus Estimate for premium revenues is pegged at $7.6 billion, which indicates an improvement of 12.2% from the prior-year quarter’s reported figure. Our estimate for the metric is $7.5 billion. The consensus mark for total ending membership suggests 2% growth from the prior-year quarter’s reported figure.
Two other revenue components, namely investment income and other revenue, are expected to have witnessed an increase in the to-be-reported quarter, though their contribution remains meagre to the overall revenues of MOH. Investment income is likely to have registered an uptick, courtesy of growing interest rates. The Zacks Consensus Estimate for investment income and other revenue stands at $38.4 million, indicating a rise of 6.6% from the year-ago quarter’s reported number.
Molina Healthcare’s Medicaid business, accounting for a major chunk of its overall revenues followed by Medicare and Marketplace businesses, is expected to have been driven by benefits from acquisitions, state contract wins, and strength exhibited by D-SNP and MAPD products. While the Medicare business is likely to have gained from a favorable rate environment and an aging U.S. population, results of the Marketplace business are expected to reflect a recovery phase for the third quarter.
Solid medical cost-management efforts and a reduction in COVID costs are likely to have led to a reduction in the Medical Care Ratio (MCR) of Molina Healthcare. The consensus mark for the same is pegged at 88%, indicating an improvement of 100 basis points from the year-ago quarter’s reported figure. A lower MCR ratio indicates more premiums left in the insurer's hands even after paying customers' insurance claims.
However, the margins of Molina Healthcare might have suffered a blow in the third quarter due to an escalation in general and administrative expenses, and premium tax expenses.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Molina Healthcare this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here, as you see below.
Earnings ESP: Molina Healthcare has an Earnings ESP of -1.37% because the Most Accurate Estimate of $4.19 is pegged lower than the Zacks Consensus Estimate of $4.25. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Molina Healthcare currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
While an earnings beat looks uncertain for Molina Healthcare, here are some companies from the Medical space that you may want to consider, as our model shows that these have the right combination of elements to beat on earnings this time around:
Jazz Pharmaceuticals plc (JAZZ - Free Report) has an Earnings ESP of +0.53% and a Zacks Rank of 1, currently. The Zacks Consensus Estimate for JAZZ’s third-quarter 2022 earnings is pegged at $4.74 per share, indicating a rise of 12.9% from the prior-year quarter’s reported figure.
Jazz Pharmaceuticals’ earnings outpaced estimates in three of the trailing four quarters and missed the mark once, the average surprise being 10.94%.
Lantheus Holdings, Inc. (LNTH - Free Report) has an Earnings ESP of +3.03% and a Zacks Rank of 2, currently. The Zacks Consensus Estimate for LNTH’s third-quarter 2022 earnings is pegged at 83 cents per share, indicating an increase to more than 10-fold from the year-ago quarter’s reported figure.
Lantheus' bottom line beat estimates in each of the trailing four quarters, the average surprise being 54.60%.
Abiomed, Inc. has an Earnings ESP of +4.18% and a Zacks Rank #3, currently. The Zacks Consensus Estimate for ABMD’s third-quarter 2022 earnings is pegged at $1.04 per share, indicating a 1% increase from the prior-year quarter’s reported figure.
Abiomed’s earnings beat estimates in each of the trailing four quarters, the average surprise being 10.89%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.