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Molina Healthcare (MOH) to Incur $200M Impairment Charge in Q4
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Molina Healthcare, Inc. (MOH - Free Report) recently announced in a filing that it would record an impairment charge of around $200 million for the fourth quarter of 2022. The non-cash charge is related to certain leased spaces.
MOH’s intention to shift to a permanent remote work environment has led to the decision of reducing its real estate footprint, which triggered the charge. The company anticipates that the non-cash impairment charge will not affect its adjusted net income for the fourth quarter.
The Zacks Consensus Estimate for fourth-quarter 2022 adjusted net income is pegged at $4.06 per share, indicating 41% year-over-year growth. For the full year, Molina Healthcare expects the metric to be a minimum of $17.75 per share, up 31.1% from the 2021 reported figure, while the Zacks Consensus Estimate is pegged at $17.79.
The company beat earnings estimates in each of the past four quarters with an average of 3.2%. Per its 2022 guidance, premium revenues are projected to be roughly $30.5 billion, signaling a 13.4% increase from the 2021 figure. Also, 2022 net income is expected to be $1 billion, signaling a surge of 57.5% from the 2021 reported figure.
The reduction of MOH’s real estate footprint is expected to result in a sizeable decline in leased real estate expense. This will likely help the company boost its profit levels in the coming days.
Price Performance
MOH shares have climbed 3.9% in the past year compared with the 5.2% increase in the industry.
The Zacks Consensus Estimate for CareDx’s current-year earnings has improved 24.5% in the past 60 days. CDNA has witnessed two upward estimate revisions during this time against none in the opposite direction. It beat earnings estimates by 57.1% in the last reported quarter.
The Zacks Consensus Estimate for MedAvail Holdings’ current-year bottom line indicates a 37.3% improvement from the prior-year reported number. MDVL has witnessed one upward estimate revision in the past 60 days against none in the opposite direction.
The Zacks Consensus Estimate for Progyny’s 2022 bottom line has increased 16.7% in the past 60 days. PGNY beat earnings estimates in each of the past four quarters, with an average surprise of 233.8%.
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Molina Healthcare (MOH) to Incur $200M Impairment Charge in Q4
Molina Healthcare, Inc. (MOH - Free Report) recently announced in a filing that it would record an impairment charge of around $200 million for the fourth quarter of 2022. The non-cash charge is related to certain leased spaces.
MOH’s intention to shift to a permanent remote work environment has led to the decision of reducing its real estate footprint, which triggered the charge. The company anticipates that the non-cash impairment charge will not affect its adjusted net income for the fourth quarter.
The Zacks Consensus Estimate for fourth-quarter 2022 adjusted net income is pegged at $4.06 per share, indicating 41% year-over-year growth. For the full year, Molina Healthcare expects the metric to be a minimum of $17.75 per share, up 31.1% from the 2021 reported figure, while the Zacks Consensus Estimate is pegged at $17.79.
The company beat earnings estimates in each of the past four quarters with an average of 3.2%. Per its 2022 guidance, premium revenues are projected to be roughly $30.5 billion, signaling a 13.4% increase from the 2021 figure. Also, 2022 net income is expected to be $1 billion, signaling a surge of 57.5% from the 2021 reported figure.
The reduction of MOH’s real estate footprint is expected to result in a sizeable decline in leased real estate expense. This will likely help the company boost its profit levels in the coming days.
Price Performance
MOH shares have climbed 3.9% in the past year compared with the 5.2% increase in the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Molina Healthcare currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader medical space are CareDx, Inc (CDNA - Free Report) , MedAvail Holdings, Inc. and Progyny, Inc. (PGNY - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for CareDx’s current-year earnings has improved 24.5% in the past 60 days. CDNA has witnessed two upward estimate revisions during this time against none in the opposite direction. It beat earnings estimates by 57.1% in the last reported quarter.
The Zacks Consensus Estimate for MedAvail Holdings’ current-year bottom line indicates a 37.3% improvement from the prior-year reported number. MDVL has witnessed one upward estimate revision in the past 60 days against none in the opposite direction.
The Zacks Consensus Estimate for Progyny’s 2022 bottom line has increased 16.7% in the past 60 days. PGNY beat earnings estimates in each of the past four quarters, with an average surprise of 233.8%.