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Molina Healthcare's (MOH) Q3 Earnings Beat Estimates, Up Y/Y
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Molina Healthcare, Inc.’s (MOH - Free Report) third-quarter 2018 adjusted earnings of $2.90 per share surpassed the Zacks Consensus Estimate by a whopping 75.8%. This upside was driven by the execution of margin recovery along with sustainability plan and an effective performance management. The bottom line also reversed its year-ago period’s loss of $1.70.
Molina Healthcare, Inc Price, Consensus and EPS Surprise
For the quarter under review, total revenues came in at $4.6 billion, in line with the Zacks Consensus Estimate. However, the top line declined 6.6% year over year, mainly due to lower premium revenues.
Quarterly Operational Update
Total operating expenses declined about 13.2% year over year to $4.4 billion. This improvement was attributable to lower medical care cost, general and administrative expenses, restructuring and separation costs.
For the third quarter, medical care cost was lowered 10.2% year over year to $3.8 billion.
Molina Healthcare’s interest expenses were down 19% year over year to $26 million.
In the quarter under review, the company sold its Medicaid management information systems (MMIS) business to DXC Technology Company for $233 million.
Financial Update
As of Sep 30, 2018, Molina Healthcare’s cash and cash equivalents saw a reduction of 11.7% from the level at year-end 2017 to $2.8 billion.
Total assets fell 5% to $8.1 billion from the tally at 2017 end.
The company’s shareholder equity improved nearly 17% from the figure at year-end 2017 to $1.5 billion.
For the third quarter, net cash outflow for operating activities stood at $505 million against net cash inflow of $285 million for the same time frame in 2017.
Guidance Revised
Adjusted net income per share is expected in the band of $8.80-$9 (up from the prior guidance of $7.15-$7.35).
The company has reiterated its total revenue expectation of $18.8 billion in 2018.
Medical Care Costs are now predicted at $15.1 billion, lower than the earlier projection of $15.2 billion.
The company still envisions to incur general and administrative expenses of $1.4 billion in 2018 (in line with the preliminary estimate).
Net income is anticipated within $585-$600 million (up from the past forecast of $471-$484 million).
The company’s EBITDA is estimated between $1,105 million and $1,125 million (up from the prior outlook of $968-$985 million).
UnitedHealth Group Incorporated’s (UNH - Free Report) third-quarter bottom line beat estimates on the back of higher revenues.
Centene Inc.’s (CNC - Free Report) third-quarter earnings surpassed estimates, majorly driven by the company’s execution of its growth strategy and solid operating metrics.
Community Health Systems, Inc.’s (CYH - Free Report) loss wider than estimated is due to lower admissions in the reported quarter.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Molina Healthcare's (MOH) Q3 Earnings Beat Estimates, Up Y/Y
Molina Healthcare, Inc.’s (MOH - Free Report) third-quarter 2018 adjusted earnings of $2.90 per share surpassed the Zacks Consensus Estimate by a whopping 75.8%. This upside was driven by the execution of margin recovery along with sustainability plan and an effective performance management. The bottom line also reversed its year-ago period’s loss of $1.70.
Molina Healthcare, Inc Price, Consensus and EPS Surprise
Molina Healthcare, Inc Price, Consensus and EPS Surprise | Molina Healthcare, Inc Quote
For the quarter under review, total revenues came in at $4.6 billion, in line with the Zacks Consensus Estimate. However, the top line declined 6.6% year over year, mainly due to lower premium revenues.
Quarterly Operational Update
Total operating expenses declined about 13.2% year over year to $4.4 billion. This improvement was attributable to lower medical care cost, general and administrative expenses, restructuring and separation costs.
For the third quarter, medical care cost was lowered 10.2% year over year to $3.8 billion.
Molina Healthcare’s interest expenses were down 19% year over year to $26 million.
In the quarter under review, the company sold its Medicaid management information systems (MMIS) business to DXC Technology Company for $233 million.
Financial Update
As of Sep 30, 2018, Molina Healthcare’s cash and cash equivalents saw a reduction of 11.7% from the level at year-end 2017 to $2.8 billion.
Total assets fell 5% to $8.1 billion from the tally at 2017 end.
The company’s shareholder equity improved nearly 17% from the figure at year-end 2017 to $1.5 billion.
For the third quarter, net cash outflow for operating activities stood at $505 million against net cash inflow of $285 million for the same time frame in 2017.
Guidance Revised
Adjusted net income per share is expected in the band of $8.80-$9 (up from the prior guidance of $7.15-$7.35).
The company has reiterated its total revenue expectation of $18.8 billion in 2018.
Medical Care Costs are now predicted at $15.1 billion, lower than the earlier projection of $15.2 billion.
The company still envisions to incur general and administrative expenses of $1.4 billion in 2018 (in line with the preliminary estimate).
Net income is anticipated within $585-$600 million (up from the past forecast of $471-$484 million).
The company’s EBITDA is estimated between $1,105 million and $1,125 million (up from the prior outlook of $968-$985 million).
Zacks Rank
Molina Healthcare sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Releases From the Medical Sector
UnitedHealth Group Incorporated’s (UNH - Free Report) third-quarter bottom line beat estimates on the back of higher revenues.
Centene Inc.’s (CNC - Free Report) third-quarter earnings surpassed estimates, majorly driven by the company’s execution of its growth strategy and solid operating metrics.
Community Health Systems, Inc.’s (CYH - Free Report) loss wider than estimated is due to lower admissions in the reported quarter.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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