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Molina Healthcare Q3 Earnings Miss Estimates on Rising Expenses
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Key Takeaways
Molina Healthcare posted Q3 EPS of $1.84, missing estimates and falling sharply year over year.
Revenues rose 11% YoY to $11.5B, driven by higher premiums, rate hikes and an expanded footprint.
Operating expenses jumped 14.9%, pushing the medical care ratio up to 92.6% from 89.2% last year.
Molina Healthcare, Inc. (MOH - Free Report) reported third-quarter 2025 adjusted earnings per share (EPS) of $1.84, which missed the Zacks Consensus Estimate of $3.97. Also, the bottom line fell 69.4% from the year-ago period.
Total revenues amounted to $11.5 billion, which improved 11% year over year. The top line also beat the consensus mark by 5.3%.
The quarterly earnings were affected by higher medical care costs and general and administrative expenses. However, rising premiums and rate hikes partially offset the negatives.
Molina Healthcare, Inc Price, Consensus and EPS Surprise
Premium revenues of $10.8 billion increased 11.8% year over year in the quarter under review and beat the Zacks Consensus Estimate of $10.3 billion. The improvement stemmed from buyouts, rate hikes and an expanding nationwide footprint.
As of Sept. 30, 2025, total membership improved 0.5% year over year to around 5.6 million but missed the Zacks Consensus Estimate by 2%. The health insurer witnessed year-over-year increases in customers within its Medicare and Marketplace businesses.
Investment income declined 8.5% year over year to $108 million but beat the consensus mark of $99.9 million.
Total operating expenses of $11.3 billion increased 14.9% year over year and were higher than our model estimate of $10.5 billion due to a rise in medical care costs, coupled with higher general and administrative expenses. The adjusted general and administrative expense ratio decreased to 6.3% in the third quarter from 6.4% a year ago. Interest expenses of $49 million rose from $29 million in the prior year.
The consolidated medical care ratio (medical costs as a percentage of premium revenues), or MCR, was 92.6% in the quarter under review. The metric rose from 89.2% a year ago and was higher than the consensus mark of 90.3%. Also, the figure was higher than our estimate of 89.8%.
Molina Healthcare’s adjusted net income plunged 72% year over year to $97 million.
MOH’s Financial Update (As of Sept. 30, 2025)
Molina Healthcare exited the third quarter with cash and cash equivalents of $4.2 billion, which declined from the 2024-end level of $4.7 billion. Total assets of $15.7 billion rose from $15.6 billion at 2024-end.
Long-term debt of $3.7 billion rose from $2.9 billion at 2024-end.
Total stockholders’ equity of $4.2 billion decreased from the $4.5 billion figure at 2024-end.
Net cash used in operating activities amounted to $237 million in the first nine months of 2025, against the $868 million cash generated in the first nine months of 2024.
MOH’s 2025 Guidance
Management now expects premium revenues to be around $42.5 billion, up from the previously projected figure of $42 billion, which indicates an improvement of around 10% from the 2024 reported figure. Adjusted EPS is now forecasted to be around $14 this year, which implies a reduction from its prior forecast figure of at least $19.
Adjusted net income is now projected to be $742 million, while GAAP net income is expected to be $630 million for 2025. The total membership was earlier estimated to be 5.9 million by the end of 2025. Consolidated MCR is likely to stay at 91.3%. It is also expected that the effective tax rate would be 21.7% in 2025.
MOH’s Zacks Rank
MOH currently carries a Zacks Rank #5 (Strong Sell).
Stocks to Report Earnings
Here are three companies from the Medical space that are likely to report their respective quarterly earnings soon.
Exact Sciences’ earnings beat estimates in three of the trailing four quarters and missed the mark once, the average surprise being 329.9%.
ANI Pharmaceuticals, Inc. (ANIP - Free Report) has an Earnings ESP of +6.24% and a Zacks Rank of 2 (Buy) at present. The Zacks Consensus Estimate for ANIP’s third-quarter 2025 earnings is $1.74 per share, implying 29.9% growth from the year-ago quarter’s figure.
ANI Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, the average surprise being 22.7%.
Evercore Inc. (EVR - Free Report) currently has an Earnings ESP of +12.21% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for EVR’s third-quarter 2025 earnings is pegged at $2.87 per share, indicating a 40.7% rise from the prior-year quarter’s number.
Evercore’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 44.1%.
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Molina Healthcare Q3 Earnings Miss Estimates on Rising Expenses
Key Takeaways
Molina Healthcare, Inc. (MOH - Free Report) reported third-quarter 2025 adjusted earnings per share (EPS) of $1.84, which missed the Zacks Consensus Estimate of $3.97. Also, the bottom line fell 69.4% from the year-ago period.
Total revenues amounted to $11.5 billion, which improved 11% year over year. The top line also beat the consensus mark by 5.3%.
The quarterly earnings were affected by higher medical care costs and general and administrative expenses. However, rising premiums and rate hikes partially offset the negatives.
Molina Healthcare, Inc Price, Consensus and EPS Surprise
Molina Healthcare, Inc price-consensus-eps-surprise-chart | Molina Healthcare, Inc Quote
MOH’s Q3 Operational Update
Premium revenues of $10.8 billion increased 11.8% year over year in the quarter under review and beat the Zacks Consensus Estimate of $10.3 billion. The improvement stemmed from buyouts, rate hikes and an expanding nationwide footprint.
As of Sept. 30, 2025, total membership improved 0.5% year over year to around 5.6 million but missed the Zacks Consensus Estimate by 2%. The health insurer witnessed year-over-year increases in customers within its Medicare and Marketplace businesses.
Investment income declined 8.5% year over year to $108 million but beat the consensus mark of $99.9 million.
Total operating expenses of $11.3 billion increased 14.9% year over year and were higher than our model estimate of $10.5 billion due to a rise in medical care costs, coupled with higher general and administrative expenses. The adjusted general and administrative expense ratio decreased to 6.3% in the third quarter from 6.4% a year ago. Interest expenses of $49 million rose from $29 million in the prior year.
The consolidated medical care ratio (medical costs as a percentage of premium revenues), or MCR, was 92.6% in the quarter under review. The metric rose from 89.2% a year ago and was higher than the consensus mark of 90.3%. Also, the figure was higher than our estimate of 89.8%.
Molina Healthcare’s adjusted net income plunged 72% year over year to $97 million.
MOH’s Financial Update (As of Sept. 30, 2025)
Molina Healthcare exited the third quarter with cash and cash equivalents of $4.2 billion, which declined from the 2024-end level of $4.7 billion. Total assets of $15.7 billion rose from $15.6 billion at 2024-end.
Long-term debt of $3.7 billion rose from $2.9 billion at 2024-end.
Total stockholders’ equity of $4.2 billion decreased from the $4.5 billion figure at 2024-end.
Net cash used in operating activities amounted to $237 million in the first nine months of 2025, against the $868 million cash generated in the first nine months of 2024.
MOH’s 2025 Guidance
Management now expects premium revenues to be around $42.5 billion, up from the previously projected figure of $42 billion, which indicates an improvement of around 10% from the 2024 reported figure. Adjusted EPS is now forecasted to be around $14 this year, which implies a reduction from its prior forecast figure of at least $19.
Adjusted net income is now projected to be $742 million, while GAAP net income is expected to be $630 million for 2025. The total membership was earlier estimated to be 5.9 million by the end of 2025. Consolidated MCR is likely to stay at 91.3%. It is also expected that the effective tax rate would be 21.7% in 2025.
MOH’s Zacks Rank
MOH currently carries a Zacks Rank #5 (Strong Sell).
Stocks to Report Earnings
Here are three companies from the Medical space that are likely to report their respective quarterly earnings soon.
Exact Sciences Corporation (EXAS - Free Report) has an Earnings ESP of +56.25% and a Zacks Rank #1 (Strong Buy) at present. The Zacks Consensus Estimate for EXAS’ third-quarter 2025 earnings is pegged at 10 cents per share. A loss of 21 cents per share was incurred in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Exact Sciences’ earnings beat estimates in three of the trailing four quarters and missed the mark once, the average surprise being 329.9%.
ANI Pharmaceuticals, Inc. (ANIP - Free Report) has an Earnings ESP of +6.24% and a Zacks Rank of 2 (Buy) at present. The Zacks Consensus Estimate for ANIP’s third-quarter 2025 earnings is $1.74 per share, implying 29.9% growth from the year-ago quarter’s figure.
ANI Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, the average surprise being 22.7%.
Evercore Inc. (EVR - Free Report) currently has an Earnings ESP of +12.21% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for EVR’s third-quarter 2025 earnings is pegged at $2.87 per share, indicating a 40.7% rise from the prior-year quarter’s number.
Evercore’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 44.1%.