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Molina Healthcare (MOH) Q4 Earnings Beat on Solid Medicaid Unit
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Molina Healthcare, Inc. (MOH - Free Report) reported fourth-quarter 2022 adjusted earnings per share (EPS) of $4.10, which beat the Zacks Consensus Estimate by a whisker and our estimate of $3.97. The bottom line climbed 42.4% year over year.
Total revenues of $8.2 billion improved 11% year over year in the quarter under review. The top line surpassed the consensus mark by 4.6% and our estimate of $7.8 billion.
The quarterly results benefited on the back of growing premium revenues, which in turn, was driven by membership growth and new contract wins. Yet, the bottom line was hurt by an elevated expense level and adversities inflicted by the net COVID effect.
Molina Healthcare, Inc. Price, Consensus and EPS Surprise
Premium revenues of Molina Healthcare were $7.9 billion, which rose 10.5% year over year resulting from buyouts and organic membership growth in its Medicaid and Medicare businesses. The figure outpaced the Zacks Consensus Estimate of $7.6 billion and our estimate of $7.5 billion.
Total operating expenses of $8.1 billion escalated 12.5% year over year in the fourth quarter due to higher medical care costs, general and administrative expenses, and premium tax expenses. Our estimate for the metric stands at $7.5 billion.
Interest expenses dropped 10% year over year to $27 million, lower than our estimate of $28.9 million.
MOH reported a net income of $56 million, which plunged 45.6% year over year in the quarter under review.
The consolidated medical care ratio (medical costs as a percentage of premium revenues) or MCR came in at 88.3%, which improved 50 basis points (bps) year over year.
Adjusted general and administrative expense ratio deteriorated 10 bps year over year to 7.5%.
As of Dec 31, 2022, total membership inched up 1.1% year over year to roughly 5.3 million members. The growth came on the back of strength across the Medicaid and Medicare businesses of Molina Healthcare. The reported figure beat the consensus mark of 5 million and our estimate of 4.6 million.
Financial Update (as of Dec 31, 2022)
Molina Healthcare exited the fourth quarter with cash and cash equivalents of $4 billion, which fell 9.7% from the 2021-end level. Total assets of $12.3 billion inched up 0.9% from the figure at 2021 end.
Long-term debt was $2.2 billion, up 0.1% from the figure as of Dec 31, 2021.
Total stockholders’ equity advanced 12.7% from the 2021-end level to $3 billion.
During 2022, MOH’s net cash provided by operating activities came in at $773 million. The figure declined nearly three-fold year over year due to a cash settlement linked with a large prior-year marketplace risk adjustment and Medicaid risk corridor payments that took place last year.
2023 Guidance
Premium revenues are anticipated to be roughly $32 billion, which indicates an improvement of 4% from the 2022 reported figure of $30.9 billion.
The total revenues of Molina Healthcare are estimated to be $33 billion in 2023, suggesting 3.1% growth from the 2022 figure of $32 billion.
Adjusted EPS is forecasted to be a minimum of $19.75, implying a rise of around 10% from the 2022 reported figure of $17.92.
GAAP net income is predicted at $1.1 billion, which indicates a surge of 36% from the 2022 figure of $792 million.
Total membership at 2023-end is estimated at 5.1 million, down 3.8% from the 2022-end figure.
Consolidated MCR is expected at 88%, which remains in line with the 2022 figure.
Of the other Medical sector players that have reported fourth-quarter results so far, the bottom lines of Cigna Corporation (CI - Free Report) , Inspire Medical Systems, Inc. (INSP - Free Report) and IDEXX Laboratories, Inc. (IDXX - Free Report) beat the Zacks Consensus Estimate.
Cigna reported fourth-quarter 2022 adjusted earnings of $4.96 per share, which outpaced the Zacks Consensus Estimate by 2.5%. The bottom line advanced 4% year over year. Adjusted revenues inched up 0.1% year over year to $45,743 million. The top line beat the consensus mark by a whisker. CI’s medical customer base came in at 18 million, which grew 5.4% year over year as of Dec 31, 2022. The adjusted selling, general and administrative (SG&A) expense ratio of 7.6% deteriorated 20 basis points (bps) year over year.
Inspire Medical’s fourth-quarter 2022 EPS of 10 cents came in against the year-over-year loss of 9 cents per share. The figure surpassed the Zacks Consensus Estimate of a loss of 54 cents per share. INSP registered revenues of $137.9 million in the fourth quarter, up 75.9% year over year. The figure surpassed the Zacks Consensus Estimate by 0.1%. For the quarter under review, U.S. revenues of $134.3 million reflected an increase of 78% from the year-ago quarter on a reported basis.
IDEXX Laboratories posted fourth-quarter 2022 EPS of $2.05, up 8.5% year over year. The figure surpassed the Zacks Consensus Estimate by 6.8%. Fourth-quarter revenues grew 3% year over year to $828.6 million. Organically, growth was 7%. The metric exceeded the Zacks Consensus Estimate by 1.5%. Veterinary software, services and diagnostic imaging systems revenues of IDXX increased 15% as reported and 17% organically.
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Molina Healthcare (MOH) Q4 Earnings Beat on Solid Medicaid Unit
Molina Healthcare, Inc. (MOH - Free Report) reported fourth-quarter 2022 adjusted earnings per share (EPS) of $4.10, which beat the Zacks Consensus Estimate by a whisker and our estimate of $3.97. The bottom line climbed 42.4% year over year.
Total revenues of $8.2 billion improved 11% year over year in the quarter under review. The top line surpassed the consensus mark by 4.6% and our estimate of $7.8 billion.
The quarterly results benefited on the back of growing premium revenues, which in turn, was driven by membership growth and new contract wins. Yet, the bottom line was hurt by an elevated expense level and adversities inflicted by the net COVID effect.
Molina Healthcare, Inc. Price, Consensus and EPS Surprise
Molina Healthcare, Inc. price-consensus-eps-surprise-chart | Molina Healthcare, Inc. Quote
Quarterly Operational Update
Premium revenues of Molina Healthcare were $7.9 billion, which rose 10.5% year over year resulting from buyouts and organic membership growth in its Medicaid and Medicare businesses. The figure outpaced the Zacks Consensus Estimate of $7.6 billion and our estimate of $7.5 billion.
Total operating expenses of $8.1 billion escalated 12.5% year over year in the fourth quarter due to higher medical care costs, general and administrative expenses, and premium tax expenses. Our estimate for the metric stands at $7.5 billion.
Interest expenses dropped 10% year over year to $27 million, lower than our estimate of $28.9 million.
MOH reported a net income of $56 million, which plunged 45.6% year over year in the quarter under review.
The consolidated medical care ratio (medical costs as a percentage of premium revenues) or MCR came in at 88.3%, which improved 50 basis points (bps) year over year.
Adjusted general and administrative expense ratio deteriorated 10 bps year over year to 7.5%.
As of Dec 31, 2022, total membership inched up 1.1% year over year to roughly 5.3 million members. The growth came on the back of strength across the Medicaid and Medicare businesses of Molina Healthcare. The reported figure beat the consensus mark of 5 million and our estimate of 4.6 million.
Financial Update (as of Dec 31, 2022)
Molina Healthcare exited the fourth quarter with cash and cash equivalents of $4 billion, which fell 9.7% from the 2021-end level. Total assets of $12.3 billion inched up 0.9% from the figure at 2021 end.
Long-term debt was $2.2 billion, up 0.1% from the figure as of Dec 31, 2021.
Total stockholders’ equity advanced 12.7% from the 2021-end level to $3 billion.
During 2022, MOH’s net cash provided by operating activities came in at $773 million. The figure declined nearly three-fold year over year due to a cash settlement linked with a large prior-year marketplace risk adjustment and Medicaid risk corridor payments that took place last year.
2023 Guidance
Premium revenues are anticipated to be roughly $32 billion, which indicates an improvement of 4% from the 2022 reported figure of $30.9 billion.
The total revenues of Molina Healthcare are estimated to be $33 billion in 2023, suggesting 3.1% growth from the 2022 figure of $32 billion.
Adjusted EPS is forecasted to be a minimum of $19.75, implying a rise of around 10% from the 2022 reported figure of $17.92.
GAAP net income is predicted at $1.1 billion, which indicates a surge of 36% from the 2022 figure of $792 million.
Total membership at 2023-end is estimated at 5.1 million, down 3.8% from the 2022-end figure.
Consolidated MCR is expected at 88%, which remains in line with the 2022 figure.
Zacks Rank
Molina Healthcare currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Of the other Medical sector players that have reported fourth-quarter results so far, the bottom lines of Cigna Corporation (CI - Free Report) , Inspire Medical Systems, Inc. (INSP - Free Report) and IDEXX Laboratories, Inc. (IDXX - Free Report) beat the Zacks Consensus Estimate.
Cigna reported fourth-quarter 2022 adjusted earnings of $4.96 per share, which outpaced the Zacks Consensus Estimate by 2.5%. The bottom line advanced 4% year over year. Adjusted revenues inched up 0.1% year over year to $45,743 million. The top line beat the consensus mark by a whisker. CI’s medical customer base came in at 18 million, which grew 5.4% year over year as of Dec 31, 2022. The adjusted selling, general and administrative (SG&A) expense ratio of 7.6% deteriorated 20 basis points (bps) year over year.
Inspire Medical’s fourth-quarter 2022 EPS of 10 cents came in against the year-over-year loss of 9 cents per share. The figure surpassed the Zacks Consensus Estimate of a loss of 54 cents per share. INSP registered revenues of $137.9 million in the fourth quarter, up 75.9% year over year. The figure surpassed the Zacks Consensus Estimate by 0.1%. For the quarter under review, U.S. revenues of $134.3 million reflected an increase of 78% from the year-ago quarter on a reported basis.
IDEXX Laboratories posted fourth-quarter 2022 EPS of $2.05, up 8.5% year over year. The figure surpassed the Zacks Consensus Estimate by 6.8%. Fourth-quarter revenues grew 3% year over year to $828.6 million. Organically, growth was 7%. The metric exceeded the Zacks Consensus Estimate by 1.5%. Veterinary software, services and diagnostic imaging systems revenues of IDXX increased 15% as reported and 17% organically.