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Molina Healthcare's (MOH) Q1 Earnings Top Estimates, Rise Y/Y

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Molina Healthcare, Inc.’s (MOH - Free Report) first-quarter 2021 adjusted earnings of $4.44 per share beat the Zacks Consensus Estimate by 17.5%. Moreover, the bottom line improved 47% year over year on the back of higher revenues.
Total revenues of $6.5 billion also beat the consensus mark by 5.2%.

Moreover, the top line rose 43.4% year over year on increased membership in Medicaid and Marketplace. It also includes the positive impact of buyouts that closed in the second half of last year.

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 $228 million, up 28.1% year over year.
Total operating expenses increased 44.7% year over year to $6.2 billion. This deterioration was due to higher medical care costs, general and administrative expenses, premium tax expenses, etc.

Molina Healthcare’s interest expenses climbed 42.9% year over year to $30 million.

Total membership at the end of the first quarter stands at 4.6 million, up 35% year over year.

Financial Update

As of Mar 31, 2021, Molina Healthcare’s cash and cash equivalents increased 6.7% to $4.4 billion from the level at 2020 end.

Total assets rose 4.4% from the level at 2020 end to $9.9 billion.

The company’s shareholder equity improved 3.2% from the figure at 2020 end to $2.2 billion.

As of Mar 31, 2021, net cash flow provided by operating activities stands at $568 million, up 297.2% year over year.

2021 Guidance

Following first-quarter results, the company reaffirmed its outlook for the current year.

It now expects earnings per share to be no less than $13, up from the prior-projected range of $12.50-$13 per share. However, it raised its 2020 total revenue outlook to more than $25 billion, higher than the prior guidance of above $24 billion.

The company now estimates 2021 premium revenues to be in excess of $24 billion.

Zacks Rank

Molina Healthcare currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Medical Sector Releases

Of the medical sector players that have reported first-quarter results so far, the bottom-line results of  UnitedHealth Group Incorporated  (UNH - Free Report) , Anthem Inc. and Tenet Healthcare Corporation (THC - Free Report) beat their respective Zacks Consensus Estimate.

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