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.
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.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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.
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.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on UNH - FREE
Get the latest research report on MOH - FREE
Get the latest research report on CNC - FREE