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Molina Healthcare (MOH) Posts Q4 Loss, Misses on Revenues

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Molina Healthcare, Inc. (MOH - Free Report) reported fourth-quarter 2020 adjusted loss of 51 cents per share. The Zacks Consensus Estimate was of earnings of 90 cents per share. Moreover, the bottom line came against the year-ago quarter’s earnings of $2.73 per share, mainly due to higher expenses and the COVID-19 impact.

Total revenues of $5.2 billion also missed the consensus mark by 1.3%.

However, the top line rose 22.5% year over year on increased membership, mainly in Medicaid as well as owing to accretive YourCare and Passport acquisitions.

Molina Healthcare, Inc Price, Consensus and EPS Surprise
Molina Healthcare, Inc Price, Consensus and EPS Surprise

Molina Healthcare, Inc price-consensus-eps-surprise-chart | Molina Healthcare, Inc Quote

Quarterly Operational Update

The company’s net income totaled $34 million, down 79.8% year over year.
Total operating expenses increased 27.6% year over year to $5.1 billion due to higher medical care costs, general and administrative expenses, premium tax expenses, health insurer fees and other expenses.

Molina Healthcare’s interest expenses climbed 50% year over year to $30 million.

Total membership under Government Program at the end of the fourth quarter stands at 4 billion, up 21% year over year.

Financial Update

As of Dec 31, 2020, Molina Healthcare’s cash and cash equivalents surged 69.4% to $4.1 billion from the level at 2019 end.

Total assets rose 40.4% from the level at 2019 end to $9.5 billion.

The company’s shareholder equity improved 6.9% from the figure at 2019 end to $2 billion.

As of Dec 31, 2020, net cash flow provided by operating activities stood at $1.9 billion compared with $427 million at 2019 end.

Share Repurchase Update

In September, the company’s board of directors approved a share buyback plan of up to $500 million.

2021 Guidance

Following fourth-quarter results, the company issued its outlook for 2021.

Premium revenue growth is projected to be more than 25%. Adjusted EPS is estimated in the band of $12.50-$13 per share.

Total revenues for 2021 are anticipated to be more than $24 billion.

Full-Year Update

For 2020, net income of the company was $11.23, down 2.1% from the year-ago period.

In 2020, the company’s total revenues were up 15% year over year to $19.4 billion, mainly on the back of higher membership.

Zacks Rank

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 other players from the medical space that have reported fourth-quarter earnings so far, the bottom-line results of UnitedHealth Group Incorporated (UNH - Free Report) and HCA Healthcare Inc. (HCA - Free Report) beat estimates while that of Anthem, Inc. missed the same.

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