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Molina Healthcare (MOH) Misses on Q2 Earnings, Hikes '21 View

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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 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.
 

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