We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Molina Healthcare's (MOH) Q3 Earnings: Is a Beat in Store?
Read MoreHide Full Article
Molina Healthcare, Inc (MOH - Free Report) is scheduled to report third-quarter 2018 results on Oct 31. Last reported quarter, the company delivered a positive earnings surprise of 106.42%.
What to Expect for Q3 Earnings?
The Zacks Consensus Estimate for the company’s quarterly earnings is pegged at $1.65, up 46% year over year.
Molina Healthcare has possibly taken more initiatives to optimize its capital structure as well as boost its business portfolio. As a result, operational efficiency might have improved. In the third quarter, the Medicaid product line has also likely seen better results. Medical costs are estimated to have stabilized during the period.
Per Molina Healthcare, costs are expected to rise in the second half of the year due to higher administrative costs on timing of technology, marketing and transition expenses in places like Florida and New Mexico.
However, the company’s revenues are anticipated to suffer due to lower Marketplace revenue because of declining membership. The Zacks Consensus Estimate for the same is pegged at $4.7 billion, down 6.6% year over year.
The company is projected to have expanded its margins in Florida, courtesy of its strong Marketplace and Medicare businesses in this important managed care market.
The company predicted that its businesses would consistently perform well in the third and fourth quarters, irrespective of the seasonal impact of the Marketplace business. Further, Molina Healthcare estimates the medical care ratio for the second half to be in the upper 70s as utilization is back-end loaded because of product design and shifts in membership mix plus acuity.
What the Quantitative Model States
Our proven model conclusively shows that Molina Healthcare is likely to beat on earnings this to-be-reported quarter. This is because the stock needs to have the right combination of a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
Earnings ESP: Molina Healthcare has an Earnings ESP of +3.76%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: Molina Healthcare sports a Zacks Rank of 1, which increases the predictive power of ESP. Further, combined with a positive ESP, the stock’s chances of beating estimates are significantly higher.
Conversely, the Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks to Consider
Some other stocks worth considering from the medical sector with the perfect combination of elements to also surpass estimates in the next releases are as follows:
Alnylam Pharmaceuticals, Inc. (ALNY - Free Report) has an Earnings ESP of +12.53%. This #3 Ranked company is set to report third-quarter earnings on Nov 6.
Humana Inc (HUM - Free Report) is scheduled to announce third-quarter 2018 earnings performance on Nov 7. The stock has an Earnings ESP of +2.22% and a Zacks Rank of 2.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Molina Healthcare's (MOH) Q3 Earnings: Is a Beat in Store?
Molina Healthcare, Inc (MOH - Free Report) is scheduled to report third-quarter 2018 results on Oct 31. Last reported quarter, the company delivered a positive earnings surprise of 106.42%.
What to Expect for Q3 Earnings?
The Zacks Consensus Estimate for the company’s quarterly earnings is pegged at $1.65, up 46% year over year.
Molina Healthcare has possibly taken more initiatives to optimize its capital structure as well as boost its business portfolio. As a result, operational efficiency might have improved. In the third quarter, the Medicaid product line has also likely seen better results. Medical costs are estimated to have stabilized during the period.
Per Molina Healthcare, costs are expected to rise in the second half of the year due to higher administrative costs on timing of technology, marketing and transition expenses in places like Florida and New Mexico.
However, the company’s revenues are anticipated to suffer due to lower Marketplace revenue because of declining membership. The Zacks Consensus Estimate for the same is pegged at $4.7 billion, down 6.6% year over year.
The company is projected to have expanded its margins in Florida, courtesy of its strong Marketplace and Medicare businesses in this important managed care market.
The company predicted that its businesses would consistently perform well in the third and fourth quarters, irrespective of the seasonal impact of the Marketplace business. Further, Molina Healthcare estimates the medical care ratio for the second half to be in the upper 70s as utilization is back-end loaded because of product design and shifts in membership mix plus acuity.
What the Quantitative Model States
Our proven model conclusively shows that Molina Healthcare is likely to beat on earnings this to-be-reported quarter. This is because the stock needs to have the right combination of a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
Earnings ESP: Molina Healthcare has an Earnings ESP of +3.76%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Molina Healthcare, Inc Price and EPS Surprise
Molina Healthcare, Inc Price and EPS Surprise | Molina Healthcare, Inc Quote
Zacks Rank: Molina Healthcare sports a Zacks Rank of 1, which increases the predictive power of ESP. Further, combined with a positive ESP, the stock’s chances of beating estimates are significantly higher.
Conversely, the Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks to Consider
Some other stocks worth considering from the medical sector with the perfect combination of elements to also surpass estimates in the next releases are as follows:
Affimed N.V. (AFMD - Free Report) is slated to release third-quarter earnings figures on Nov 6. This stock has an Earnings ESP of +5.88% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Alnylam Pharmaceuticals, Inc. (ALNY - Free Report) has an Earnings ESP of +12.53%. This #3 Ranked company is set to report third-quarter earnings on Nov 6.
Humana Inc (HUM - Free Report) is scheduled to announce third-quarter 2018 earnings performance on Nov 7. The stock has an Earnings ESP of +2.22% and a Zacks Rank of 2.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>