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Molina Healthcare's (MOH) Q3 Earnings Beat Mark, Fall Y/Y

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Molina Healthcare, Inc. (MOH - Free Report) reported third-quarter 2021 adjusted earnings of $2.83 per share, beating the Zacks Consensus Estimate by 2.5%. However, the bottom line declined 15.8% year over year due to higher expenses.

Total operating revenues of $7 billion beat the consensus mark by 4.4%. The top line rose 40.2% 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 $143 million, down 22.7% year over year due to the impact from the net effect of COVID-19 on the third quarter.

Premium revenues for the company increased 43% year over year on the back of the positive effect of acquisitions as well as organic membership.

Total operating expenses shot up 44.1% year over year to $6.8 billion due to higher medical care costs, general and administrative expenses, and premium tax expenses.

Molina Healthcare’s interest expenses climbed 11.1% year over year to $30 million.

Total membership at the end of the third quarter stands at 4.8 billion, up 20% year over year.

Financial Update (as of Sep 30, 2021)

Molina Healthcare’s cash and cash equivalents rose 4.9% to $4.3 billion from the level at 2020 end.

Total assets rose 15.7% from the level at 2020 end to $11 billion.

The company’s shareholder equity improved 20.1% from the figure at 2020 end to $2.5 billion.

Net cash flow provided by operating activities stood at $1.5 billion at the end of the third quarter, up 154% year over year.

2021 Guidance

Following third-quarter results, the company raised its outlook for the full year.

Premium revenue growth is projected to be more than $26.5 billion, higher than the previous guidance of $25 billion.

Total revenues for 2021 are anticipated to be no less than $27.5 billion.

Management reaffirmed its full-year adjusted earnings guidance of not less than $13.25 per share.

Zacks Rank

Molina Healthcare currently carries a Zacks Rank #3 (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 third-quarter earnings so far, the bottom-line results of UnitedHealth Group Inc. (UNH - Free Report) ,  Tenet Healthcare Corp. (THC - Free Report) and  HCA Healthcare, Inc.  (HCA - Free Report) beat respective estimates.