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Molina (MOH) Up 3.8% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Molina (MOH - Free Report) . Shares have added about 3.8% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Molina due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Molina Healthcare, Inc before we dive into how investors and analysts have reacted as of late.
MOH Q1 EPS Tops Estimates on Lower Medical Costs, Membership Declines
Molina Healthcare reported first-quarter 2026 adjusted earnings per share (EPS) of $2.35, which beat the Zacks Consensus Estimate of $1.57. The bottom line declined 61.3% from the year-ago period's level.
Revenues amounted to $10.8 billion, which decreased 3.1% year over year. The top line marginally missed the consensus mark by 0.2%.
The first-quarter performance was supported by lower medical care costs, partially offset by declining premiums, membership and investment income.
MOH’s Q1 Operational Update
Premium revenues of $10.2 billion decreased 4.3% year over year in the quarter under review and missed the Zacks Consensus Estimate by 0.2%. The decline was due to reduced memberships, reflecting product and pricing decisions.
As of March 31, 2026, total membership decreased 12.5% year over year to around 5 million and missed the Zacks Consensus Estimate by 1.2%. The health insurer witnessed a year-over-year decrease in customers across all segments, especially in Marketplace and Other.
Investment income fell 9.3% year over year to $98 million. It missed the Zacks Consensus Estimate of $100.8 million.
Total operating expenses were $10.71 billion, flat year over year and slightly below our model estimate of $10.72 billion, driven by lower medical care costs. The adjusted general and administrative expense ratio increased to 6.9% in the first quarter from 6.3% a year ago. Interest expenses of $54 million rose from $43 million in the prior year.
The consolidated medical care ratio (medical costs as a percentage of premium revenues), or MCR, was 91.1% in the reported quarter. It rose from 89.2% a year ago but was below the Zacks Consensus Estimate of 91.5%.
Molina Healthcare’s adjusted net income decreased 64% year over year to $120 million.
MOH’s Financial Update (as of March 31, 2026)
Molina Healthcare exited the first quarter with cash and cash equivalents of $5.3 billion, which increased from the 2025-end level of $4.2 billion. Total assets of $16.4 billion rose from $15.6 billion at 2025-end.
Long-term debt was $3.8 billion, unchanged from the 2025-end levels.
Total stockholders’ equity of $4.08 billion rose from $4.07 billion at the end of 2025.
Net cash provided by operating activities amounted to $1.1 billion in the first quarter of 2026 compared with $190 million in the prior year.
MOH’s 2026 Guidance
The company's full-year 2026 premium revenue guidance has remained unchanged at about $42 billion, down roughly 2% from 2025.
Management expects 2026 GAAP earnings of at least $1.90 per diluted share. It has reaffirmed adjusted earnings guidance of at least $5.00 per diluted share.
Adjusted net income is projected to be $256 million, while GAAP net income is expected to reach $97 million in 2026.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -13.64% due to these changes.
VGM Scores
Currently, Molina has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Molina has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Molina belongs to the Zacks Medical - HMOs industry. Another stock from the same industry, UnitedHealth Group (UNH - Free Report) , has gained 7.9% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
UnitedHealth reported revenues of $111.72 billion in the last reported quarter, representing a year-over-year change of +2%. EPS of $7.23 for the same period compares with $7.20 a year ago.
For the current quarter, UnitedHealth is expected to post earnings of $4.84 per share, indicating a change of +18.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.5% over the last 30 days.
UnitedHealth has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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Molina (MOH) Up 3.8% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Molina (MOH - Free Report) . Shares have added about 3.8% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Molina due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Molina Healthcare, Inc before we dive into how investors and analysts have reacted as of late.
MOH Q1 EPS Tops Estimates on Lower Medical Costs, Membership Declines
Molina Healthcare reported first-quarter 2026 adjusted earnings per share (EPS) of $2.35, which beat the Zacks Consensus Estimate of $1.57. The bottom line declined 61.3% from the year-ago period's level.
Revenues amounted to $10.8 billion, which decreased 3.1% year over year. The top line marginally missed the consensus mark by 0.2%.
The first-quarter performance was supported by lower medical care costs, partially offset by declining premiums, membership and investment income.
MOH’s Q1 Operational Update
Premium revenues of $10.2 billion decreased 4.3% year over year in the quarter under review and missed the Zacks Consensus Estimate by 0.2%. The decline was due to reduced memberships, reflecting product and pricing decisions.
As of March 31, 2026, total membership decreased 12.5% year over year to around 5 million and missed the Zacks Consensus Estimate by 1.2%. The health insurer witnessed a year-over-year decrease in customers across all segments, especially in Marketplace and Other.
Investment income fell 9.3% year over year to $98 million. It missed the Zacks Consensus Estimate of $100.8 million.
Total operating expenses were $10.71 billion, flat year over year and slightly below our model estimate of $10.72 billion, driven by lower medical care costs. The adjusted general and administrative expense ratio increased to 6.9% in the first quarter from 6.3% a year ago. Interest expenses of $54 million rose from $43 million in the prior year.
The consolidated medical care ratio (medical costs as a percentage of premium revenues), or MCR, was 91.1% in the reported quarter. It rose from 89.2% a year ago but was below the Zacks Consensus Estimate of 91.5%.
Molina Healthcare’s adjusted net income decreased 64% year over year to $120 million.
MOH’s Financial Update (as of March 31, 2026)
Molina Healthcare exited the first quarter with cash and cash equivalents of $5.3 billion, which increased from the 2025-end level of $4.2 billion. Total assets of $16.4 billion rose from $15.6 billion at 2025-end.
Long-term debt was $3.8 billion, unchanged from the 2025-end levels.
Total stockholders’ equity of $4.08 billion rose from $4.07 billion at the end of 2025.
Net cash provided by operating activities amounted to $1.1 billion in the first quarter of 2026 compared with $190 million in the prior year.
MOH’s 2026 Guidance
The company's full-year 2026 premium revenue guidance has remained unchanged at about $42 billion, down roughly 2% from 2025.
Management expects 2026 GAAP earnings of at least $1.90 per diluted share. It has reaffirmed adjusted earnings guidance of at least $5.00 per diluted share.
Adjusted net income is projected to be $256 million, while GAAP net income is expected to reach $97 million in 2026.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -13.64% due to these changes.
VGM Scores
Currently, Molina has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of A on the value side, putting it in the top quintile for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Molina has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Molina belongs to the Zacks Medical - HMOs industry. Another stock from the same industry, UnitedHealth Group (UNH - Free Report) , has gained 7.9% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
UnitedHealth reported revenues of $111.72 billion in the last reported quarter, representing a year-over-year change of +2%. EPS of $7.23 for the same period compares with $7.20 a year ago.
For the current quarter, UnitedHealth is expected to post earnings of $4.84 per share, indicating a change of +18.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.5% over the last 30 days.
UnitedHealth has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.