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 (MOH) Misses on Q2 Earnings, Hikes '21 View
Read MoreHide Full Article
Molina Healthcare, Inc. (MOH - Free Report) reported second-quarter 2021 adjusted earnings of $3.40 per share, missing the Zacks Consensus Estimate by 2.1%. Moreover, the bottom line declined 29% year over year due to higher expenses.
Total operating revenues of $6.8 billion beat the consensus mark by 6.7%. The top line rose 47.2% year over year on increased membership and higher premium revenues.
Molina Healthcare, Inc Price, Consensus and EPS Surprise
The company’s net income totaled $185 million, down 33% year over year due to the impact from the net effect of COVID-19 on the second quarter.
Premium revenues for the company increased 51% year over year on the back of better organic membership in Medicaid, Medicare and Marketplace along with the positive effect of acquisitions that closed in the second half of last year.
Total operating expenses shot up 55.6% year over year to $6.5 billion due to higher medical care costs, general and administrative expenses, and premium tax expenses.
Molina Healthcare’s interest expenses climbed 25% year over year to $30 million.
Total membership under Government Program at the end of the second quarter stands at 4.7 billion, up 32% year over year.
Financial Update (as of Jun 30, 2021)
Molina Healthcare’s cash and cash equivalents jumped 10.9% to $4.6 billion from the level at 2020 end.
Total assets rose 10.5% from the level at 2020 end to $10.5 billion.
The company’s shareholder equity improved 13.1% from the figure at 2020 end to $2.3 billion.
Net cash flow provided by operating activities stood at $1 billion at the end of the second quarter, up 40.2% year over year.
2021 Guidance
Following second-quarter results, the company raised its outlook for 2021. Premium revenue growth is projected to be more than $25 billion, higher than the previous guidance of $24 billion. Adjusted EPS is estimated to be no less than $13.25 per share compared with the prior guidance of no less than $13.
Total revenues for 2021 are anticipated to be above $26 billion, up from the prior outlook of $25 billion.
Among other players from the medical space that have reported second- quarter earnings so far, the bottom-line results of UnitedHealth Group Incorporated (UNH - Free Report) , Tenet Healthcare Corporation (THC - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) beat estimates.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Molina Healthcare (MOH) Misses on Q2 Earnings, Hikes '21 View
Molina Healthcare, Inc. (MOH - Free Report) reported second-quarter 2021 adjusted earnings of $3.40 per share, missing the Zacks Consensus Estimate by 2.1%. Moreover, the bottom line declined 29% year over year due to higher expenses.
Total operating revenues of $6.8 billion beat the consensus mark by 6.7%. The top line rose 47.2% year over year on increased membership and higher premium revenues.
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 $185 million, down 33% year over year due to the impact from the net effect of COVID-19 on the second quarter.
Premium revenues for the company increased 51% year over year on the back of better organic membership in Medicaid, Medicare and Marketplace along with the positive effect of acquisitions that closed in the second half of last year.
Total operating expenses shot up 55.6% year over year to $6.5 billion due to higher medical care costs, general and administrative expenses, and premium tax expenses.
Molina Healthcare’s interest expenses climbed 25% year over year to $30 million.
Total membership under Government Program at the end of the second quarter stands at 4.7 billion, up 32% year over year.
Financial Update (as of Jun 30, 2021)
Molina Healthcare’s cash and cash equivalents jumped 10.9% to $4.6 billion from the level at 2020 end.
Total assets rose 10.5% from the level at 2020 end to $10.5 billion.
The company’s shareholder equity improved 13.1% from the figure at 2020 end to $2.3 billion.
Net cash flow provided by operating activities stood at $1 billion at the end of the second quarter, up 40.2% year over year.
2021 Guidance
Following second-quarter results, the company raised its outlook for 2021.
Premium revenue growth is projected to be more than $25 billion, higher than the previous guidance of $24 billion. Adjusted EPS is estimated to be no less than $13.25 per share compared with the prior guidance of no less than $13.
Total revenues for 2021 are anticipated to be above $26 billion, up from the prior outlook of $25 billion.
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.
Other Medical Sector Releases
Among other players from the medical space that have reported second-
quarter earnings so far, the bottom-line results of UnitedHealth Group Incorporated (UNH - Free Report) , Tenet Healthcare Corporation (THC - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) beat estimates.