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Molina Healthcare Inc. (MOH - Free Report) reported first-quarter 2017 adjusted net income per share of $1.47 that surpassed the Zacks Consensus Estimate of 57 cents by 157%. Earnings also skyrocketed 188% year over year.
Operational Update
In the first quarter, total revenue of $4.9 billion beat the Zacks Consensus Estimate by 2.6%. The top line has also grown 13% year over year, primarily due to a 16.3% increase in premium revenues and 22% rise in service revenues. A 55% increase in investment income and other revenues also supported the upside.
For the first quarter, total operating expenses rose 13.3% year over year to $4.8 billion due to higher Medical care costs, increased cost of service revenues, a rise in general and administrative expenses, higher premium tax expenses as well as depreciation and amortization costs.
For the first quarter, Medical care cost increased 14.6% year over year to $4.1 billion.
Continuously rising debt burden resulted in Molina Healthcare’s interest expenses increasing 4% year over year to $26 million in the first quarter.
Financial Update
As of Mar 31, 2017, Molina Healthcare’s cash and cash equivalents increased 13.4% from the year-end 2015 level to $3.2 billion.
Total assets grew 8% from the end of 2016 to $85 billion.
Molina Healthcare’s shareholder equity increased 4.7% from year-end 2016 to $1.7 billion.
Net cash from operating activities totaled $719 million in the first quarter, up from $139 million in the year-ago quarter.
2017 Guidance
For 2017, the company expects earnings per diluted share and adjusted earnings per diluted share of $2.53 and $2.90, respectively. It also revised the 2017 outlook to include the impact of the $75 million acquisition termination fee received in the first quarter of 2017.
Molina Healthcare Inc Price, Consensus and EPS Surprise
Among the other firms in the medical sector that have reported first-quarter earnings so far, the bottom line at Aetna Inc. , Humana Inc. (HUM - Free Report) and UnitedHealth Group Inc. (UNH - Free Report) beat their respective Zacks Consensus Estimate.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
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Molina Healthcare (MOH) Q1 Earnings, Revenues Beat Estimates
Molina Healthcare Inc. (MOH - Free Report) reported first-quarter 2017 adjusted net income per share of $1.47 that surpassed the Zacks Consensus Estimate of 57 cents by 157%. Earnings also skyrocketed 188% year over year.
Operational Update
In the first quarter, total revenue of $4.9 billion beat the Zacks Consensus Estimate by 2.6%. The top line has also grown 13% year over year, primarily due to a 16.3% increase in premium revenues and 22% rise in service revenues. A 55% increase in investment income and other revenues also supported the upside.
For the first quarter, total operating expenses rose 13.3% year over year to $4.8 billion due to higher Medical care costs, increased cost of service revenues, a rise in general and administrative expenses, higher premium tax expenses as well as depreciation and amortization costs.
For the first quarter, Medical care cost increased 14.6% year over year to $4.1 billion.
Continuously rising debt burden resulted in Molina Healthcare’s interest expenses increasing 4% year over year to $26 million in the first quarter.
Financial Update
As of Mar 31, 2017, Molina Healthcare’s cash and cash equivalents increased 13.4% from the year-end 2015 level to $3.2 billion.
Total assets grew 8% from the end of 2016 to $85 billion.
Molina Healthcare’s shareholder equity increased 4.7% from year-end 2016 to $1.7 billion.
Net cash from operating activities totaled $719 million in the first quarter, up from $139 million in the year-ago quarter.
2017 Guidance
For 2017, the company expects earnings per diluted share and adjusted earnings per diluted share of $2.53 and $2.90, respectively. It also revised the 2017 outlook to include the impact of the $75 million acquisition termination fee received in the first quarter of 2017.
Molina Healthcare Inc Price, Consensus and EPS Surprise
Molina Healthcare Inc Price, Consensus and EPS Surprise | Molina Healthcare Inc Quote
Zacks Rank and Performance of Other Insurers
Molina Healthcare currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among the other firms in the medical sector that have reported first-quarter earnings so far, the bottom line at Aetna Inc. , Humana Inc. (HUM - Free Report) and UnitedHealth Group Inc. (UNH - Free Report) beat their respective Zacks Consensus Estimate.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>