Molina Healthcare, Inc.’s (MOH - Free Report) fourth-quarter 2019 adjusted earnings of $2.73 per share surpassed the Zacks Consensus Estimate by 4.2% on the back of declining expenses. However, the bottom line fell 29.6% year over year, mainly due to lower revenues.
Also, total revenues of $4.2 billion came almost in line with the Zacks Consensus Estimate. However, the top line was down 8.4% year over year, mainly due to loss of Medicaid membership.
Quarterly Operational Update
The company’s net income totaled $168 million, down 16.4% year over year.
Total operating expenses decreased 7.1% year over year to $4 billion. This improvement was attributable to lower Medical care costs and null cost of service revenues.
For the quarter under review, medical care cost was down 6.1% year over year to nearly $3.5 billion.
Molina Healthcare’s interest expenses dropped 16.7% year over year to $20 million owing to constant repayment of convertible notes.
Total membership by Government Program for 2019 stands at 3.3 billion, down 12.8% year over year.
Financial Update
As of Dec 31, 2019, Molina Healthcare’s cash and cash equivalents saw a reduction of 13.2% to $2.4 billion from the level at 2018 end.
Total assets fell 5.1% from the level at 2018 end to $6.7 billion.
The company’s shareholder equity improved nearly 19% from the figure at 2018 end to $1.9 billion.
For 2019, net cash flow from operating activities stands at $427 million against 2018’s net cash outflow of $314 million.
Share Repurchase and Dividend Update
In December 2019, the company’s board of directors authorized a share buyback plan of up to $500 million. During the fourth quarter, Molina Healthcare received $305 million of dividends from regulated health plan subsidiaries.
2020 Guidance
Following fourth-quarter results, the company issued its 2020 outlook. It now expects earnings in the range of $11.20-$11.70 per share.
It also projects premium revenue growth of 7.4%.
For the current year, the company anticipates its premium revenues to be $17.4 billion and total revenues to be $18.3 billion. Total membership of the company is predicted to be 3.4 million.
Full-Year Update
Net income for the year ended Dec 31, 2019 increased 4.2% year over year to $737 million. Revenues for the year totaled $16.8 billion, down 11% year over year.
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 fourth-quarter earnings, the bottom-line results of UnitedHealth Group Incorporated (UNH - Free Report) , Anthem Inc. topped the respective Zacks Consensus Estimate while that of Centene Corporation (CNC - Free Report) missed the same.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>
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) fourth-quarter 2019 adjusted earnings of $2.73 per share surpassed the Zacks Consensus Estimate by 4.2% on the back of declining expenses. However, the bottom line fell 29.6% year over year, mainly due to lower revenues.
Also, total revenues of $4.2 billion came almost in line with the Zacks Consensus Estimate. However, the top line was down 8.4% year over year, mainly due to loss of Medicaid membership.
Quarterly Operational Update
The company’s net income totaled $168 million, down 16.4% year over year.
Total operating expenses decreased 7.1% year over year to $4 billion. This improvement was attributable to lower Medical care costs and null cost of service revenues.
For the quarter under review, medical care cost was down 6.1% year over year to nearly $3.5 billion.
Molina Healthcare’s interest expenses dropped 16.7% year over year to $20 million owing to constant repayment of convertible notes.
Total membership by Government Program for 2019 stands at 3.3 billion, down 12.8% year over year.
Financial Update
As of Dec 31, 2019, Molina Healthcare’s cash and cash equivalents saw a reduction of 13.2% to $2.4 billion from the level at 2018 end.
Total assets fell 5.1% from the level at 2018 end to $6.7 billion.
The company’s shareholder equity improved nearly 19% from the figure at 2018 end to $1.9 billion.
For 2019, net cash flow from operating activities stands at $427 million against 2018’s net cash outflow of $314 million.
Share Repurchase and Dividend Update
In December 2019, the company’s board of directors authorized a share buyback plan of up to $500 million. During the fourth quarter, Molina Healthcare received $305 million of dividends from regulated health plan subsidiaries.
2020 Guidance
Following fourth-quarter results, the company issued its 2020 outlook. It now expects earnings in the range of $11.20-$11.70 per share.
It also projects premium revenue growth of 7.4%.
For the current year, the company anticipates its premium revenues to be $17.4 billion and total revenues to be $18.3 billion. Total membership of the company is predicted to be 3.4 million.
Full-Year Update
Net income for the year ended Dec 31, 2019 increased 4.2% year over year to $737 million. Revenues for the year totaled $16.8 billion, down 11% year over year.
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 fourth-quarter earnings, the bottom-line results of UnitedHealth Group Incorporated (UNH - Free Report) , Anthem Inc. topped the respective Zacks Consensus Estimate while that of Centene Corporation (CNC - Free Report) missed the same.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>
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