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Molina (MOH) Q1 Earnings and Revenues Surpass Estimates

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Molina Healthcare, Inc.’s (MOH - Free Report) first-quarter 2019 adjusted earnings of $3.04 per share surpassed the Zacks Consensus Estimate of $2.41 by a whopping 26.1%. This upside was driven by decreasing expenses. Moreover, the bottom line also soared 77.8% year over year.

Further, for the quarter under review, total revenues came in at $4.1 billion, beating the Zacks Consensus Estimate by 1.1%. However, the top line declined 11.3% year over year due to lower membership.

Molina Healthcare, Inc Price, Consensus and EPS Surprise

Molina Healthcare, Inc Price, Consensus and EPS Surprise | Molina Healthcare, Inc Quote

Quarterly Operational Update

 

The company’s net income totaled $308 million, up 25.2% year over year.

Total operating expenses fell about 13.2% year over year to $3.8 billion. This improvement was attributable to lower medical care costs and general and administrative costs.

For the first quarter, medical care cost was down 3.4% year over year to nearly $3.4 billion.

Molina Healthcare’s interest expenses were down 30.3% year over year to $23 million.

Total membership of the Government Program for 2019 stands at 3.4 billion, down 16.4% year over year.

Financial Update

As of Mar 31, 2019, Molina Healthcare’s cash and cash equivalents saw a reduction of 14.1% to $3.2billion from the level at year-end 2018.

Total assets rose 5.9% from 2018 end to $7.6 billion.

The company’s shareholder equity improved nearly 11.4% from the figure at year-end 2018 to $1.8 billion.

For the fourth quarter, net cash flow from operating activities stands at $249 million, lower than the net cash flow of $394 million as of Dec 31, 2018.

2019 Guidance

For 2019, the company expects its premium revenues to be $15.9 billion, up from the initial guidance of $15.8 billion.

Its total revenues are projected at $16.4 billion, higher than the previous expectation of $16.3 billion.

Moreover, Medicare costs are now expected to be $13.6 billion, down from the previous forecast of $13.7 billion. General and administrative expenses are anticipated at $1.3 billion, more from the previous estimate of $1.2 billion.

Net income of the company is predicted in the band of $680-$710 million, up from the prior guided range of $600-$630 million. EBITDA is projected in the $1080-$1120 million bracket, up from the previous expectation of $975-$1025 million.

Net income per share is assumed to be $10.50-$11.00, up from the former outlook of $9.25-$9.75.

Medicaid and Medicare membership is forecast to be around 3.1 million whereas Marketplace membership is estimated to be around 270000-280000, up from the preceding expectations of 3.2 million and 250000-270000, respectively. .

Zacks Rank and Performance of Other Players

Molina Healthcare sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Among other players from the HMO industry having reported first-quarter earnings so far, the bottom-line results of Anthem Inc. (ANTM - Free Report) , Centene Corporation (CNC - Free Report)   and UnitedHealth Group Inc. (UNH - Free Report) beat the respective Zacks Consensus Estimate.

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