Core Viewpoint - Molina (MOH) is expected to report quarterly earnings of $5.50 per share, a decline of 6.1% year-over-year, with revenues projected at $10.84 billion, reflecting a 9.7% increase compared to the previous year [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been revised downward by 3.8%, indicating a reassessment by analysts [2]. - Revisions to earnings estimates are significant indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Revenue- Premium tax revenue' at $377.16 million, a year-over-year increase of 26.6% [5]. - The consensus for 'Revenue- Premium revenue' is $10.44 billion, indicating a 10.5% increase from the prior year [5]. - 'Revenue- Premium revenue- Medicare' is projected to reach $1.47 billion, reflecting a 1.9% increase year-over-year [5]. - 'Revenue- Other revenue' is expected to be $22.84 million, an 8.8% increase from the previous year [6]. Membership and MCR Metrics - 'MCR - Total' is projected at 88.9%, up from 88.6% in the same quarter last year [6]. - 'MCR - Medicare' is expected to reach 85.4%, compared to 84.9% a year ago [6]. - 'MCR - Marketplace' is forecasted at 77.5%, an increase from 71.6% year-over-year [7]. - 'Ending Membership by Program - Total' is estimated at 5.79 million, up from 5.58 million in the same quarter last year [7]. - 'Ending Membership by Program - Medicaid' is projected at 4.88 million, slightly down from 4.94 million a year ago [7]. - 'Ending Membership by Program - Medicare' is expected to be 261.48 thousand, up from 251.00 thousand last year [8]. - 'Ending Membership by Program - Marketplaces' is projected at 629.31 thousand, significantly up from 386.00 thousand in the previous year [8]. - 'MCR - Medicaid' is expected to reach 91.2%, compared to 90.8% a year ago [9]. Stock Performance - Molina shares have decreased by 37.8% over the past month, contrasting with a 5.4% increase in the Zacks S&P 500 composite [9].

Core Insights - Molina Healthcare, Inc. (MOH) is scheduled to report its second-quarter 2025 results on July 23, 2025, with earnings estimated at $5.56 per share and revenues at $10.84 billion [1][2] Financial Performance - The second-quarter earnings estimate has seen three downward revisions recently, indicating a year-over-year decrease of 5.1% in earnings, while revenues are expected to grow by 9.7% year-over-year [2] - For the full year 2025, the revenue estimate stands at $44.06 billion, reflecting an 8.4% increase year-over-year, but the earnings per share estimate is $22.58, showing a slight decline of 0.3% [5] - Molina Healthcare has beaten consensus estimates in three of the last four quarters, with an average surprise of negative 1.6% [5] Membership and Premiums - The Zacks Consensus Estimate for premiums indicates a growth of 10.1% year-over-year in Q2, with Medicaid premiums expected to grow by 4.1% [7] - Medicaid membership is projected to decrease by 1.2% year-over-year, while Medicare membership is expected to grow by 4.2% [9] - Marketplace membership is anticipated to surge by 63% compared to the previous year [9] Cost and Income Trends - The medical care ratio (MCR) for the Marketplace is expected to rise to 77.49%, up from 71.60% a year ago, while the total MCR is projected at 88.86%, slightly up from 88.60% [9] - Rising costs and lower investment income are contributing to uncertainty regarding an earnings beat, with investment income expected to decline by 12.1% year-over-year [10] - Total operating expenses are predicted to increase by more than 8% from the previous year due to higher medical care costs and general administrative expenses [10] Market Position - The company currently holds a Zacks Rank of 5 (Strong Sell) and an Earnings ESP of -1.09%, indicating a lower likelihood of an earnings beat this quarter [6]

Core Viewpoint - Molina (MOH) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended June 2025, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The consensus estimate for Molina's quarterly earnings is $5.81 per share, reflecting a year-over-year decrease of 0.9%, while revenues are projected to reach $10.83 billion, representing a 9.7% increase from the previous year [3]. - The earnings report is expected to be released on July 23, and the stock may rise if the reported numbers exceed expectations, whereas a miss could lead to a decline [2]. Estimate Revisions - Over the past 30 days, the consensus EPS estimate has been revised down by 2.52%, indicating a collective reassessment by analysts regarding the company's earnings prospects [4]. - The Most Accurate Estimate for Molina is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -5.26%, suggesting a bearish outlook from analysts [12]. Earnings Surprise History - In the last reported quarter, Molina was expected to post earnings of $5.86 per share but exceeded this with actual earnings of $6.08, resulting in a positive surprise of 3.75% [13]. - Over the last four quarters, Molina has beaten consensus EPS estimates three times, indicating some historical resilience [14]. Predictive Models - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, particularly when combined with a favorable Zacks Rank [10]. - However, a negative Earnings ESP reading does not necessarily indicate an earnings miss, and stocks with negative readings are difficult to predict for earnings beats [11]. Conclusion - Molina does not currently appear to be a compelling candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of its earnings release [17].

Health insurer Elevance Health Inc. ELV is scheduled to release its second quarter 2025 financial results on July 17.Analysts estimate adjusted earnings of $9.197 per share on sales of $48.24 billion, as per data from Benzinga Pro.UnitedHealth Group Inc. UNH has been the first major health insurer to report quarterly earnings for several quarters. However, this quarter, the insurance giant will release its second quarter 2025 financial results on July 29.As it’s the biggest player in the industry, Forbes wr ...

Core Insights - Molina Healthcare, Inc. has reduced its full-year 2025 earnings guidance by 10.2% at mid-point due to rising medical costs and unpredictable utilization trends, following Centene Corporation's withdrawal of its financial outlook [1][3][10] Group 1: Earnings Guidance and Financial Outlook - For Q2 2025, Molina expects adjusted earnings of approximately $5.50 per share, which is below the Zacks Consensus Estimate of $6.12 per share and represents a 6.1% decline year-over-year [4] - The full-year adjusted earnings per share is now projected to be between $21.50 and $22.50, a significant drop from the previous forecast of at least $24.50 and below last year's figure of $22.65 [4][10] - The Zacks Consensus Estimate for Molina's 2025 revenue stands at $44.1 billion, indicating an 8.4% increase from the prior year, suggesting robust demand despite cost pressures [5] Group 2: Industry Context and Comparisons - Molina is part of a trend among health insurers facing unexpected cost pressures, with UnitedHealth Group and Centene also having withdrawn their earnings guidance [3][10] - Molina's shares have declined by 31.6% over the past three months, while the industry has dropped 38.9%, with UnitedHealth and Centene experiencing even steeper losses of 47.5% and 47.3%, respectively [9][10] Group 3: Long-term Outlook and Valuation - Despite the current challenges, Molina's long-term strategic outlook remains unchanged, with the CEO expressing confidence in the company's fundamentals [8] - Molina trades at a forward price-to-earnings ratio of 8.85, which is lower than the industry average of 11.66, and currently holds a Value Score of A [13]

Molina Healthcare reduced its full-year profit expectations as CEO Joseph Zubretsky pointed to rising costs that have outpaced insurance premiums. https://t.co/SZpZm2aguP ...

Core Viewpoint - The article emphasizes the importance of value investing and highlights Molina Healthcare (MOH) as a strong candidate for value investors due to its favorable financial metrics and Zacks Rank [2][4][6]. Company Analysis - Molina Healthcare (MOH) currently holds a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential for value investors [4]. - The stock has a Forward P/E ratio of 9.13, significantly lower than the industry average of 11.67, suggesting it may be undervalued [4]. - Over the past year, MOH's Forward P/E has fluctuated between a high of 14.07 and a low of 9.11, with a median of 12.14, indicating volatility but also potential for recovery [4]. - The PEG ratio for MOH is 0.75, compared to the industry average of 1.09, further supporting the notion that the stock is undervalued relative to its expected earnings growth [5]. - MOH's PEG ratio has ranged from a high of 1.24 to a low of 0.75 over the past year, with a median of 1.00, reflecting its growth potential [5]. - The combination of these metrics suggests that MOH is an impressive value stock at the moment, bolstered by a strong earnings outlook [6].

News Release Investor Contact: Jeffrey Geyer, Jeffrey.Geyer@molinahealthcare.com, 305-317-3012 Media Contact: Caroline Zubieta, Caroline.Zubieta@molinahealthcare.com, 562-951-1588 Molina Healthcare Announces Preliminary Second Quarter Financial Results and Updates Fiscal Year 2025 Earnings Per Share Guidance Long Beach, Calif., July 7, 2025 – Molina Healthcare, Inc. (NYSE: MOH) today announced preliminary financial results for the second quarter of 2025 and updated its full year 2025 adjusted earnings per s ...

Core Viewpoint - Molina (MOH) has experienced significant selling pressure, resulting in an 18.3% decline over the past four weeks, but analysts anticipate better earnings than previously expected, indicating potential for recovery [1] Group 1: Technical Analysis - The Relative Strength Index (RSI) is a momentum oscillator that helps identify whether a stock is oversold, with readings below 30 indicating oversold conditions [2] - MOH's current RSI reading of 21.88 suggests that the heavy selling may be exhausting, indicating a potential bounce back towards equilibrium in supply and demand [5] Group 2: Fundamental Analysis - There is a strong consensus among sell-side analysts to raise earnings estimates for MOH, with the consensus EPS estimate remaining unchanged over the last 30 days, which typically correlates with price appreciation [7] - MOH holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [8]

Market Overview - Markets ended higher on Wednesday, with the S&P 500 and Nasdaq Composite indices advancing by 0.47% and 0.94%, respectively, while the Dow Jones Industrial Average dropped by 10.52 points [1] - Market sentiment was positively influenced by a trade accord between the United States and Vietnam, easing concerns over prolonged trade tensions [1] Economic Indicators - A recent ADP report indicated an unexpected drop in private payrolls for June, with the private sector losing 33,000 jobs, suggesting potential challenges for the U.S. economy [2] - This decline in job numbers has raised scrutiny from investors, particularly in light of the Federal Reserve's cautious stance on interest rates [2] Investment Strategy - In the current macroeconomic environment, focusing on companies with strong financial fundamentals is crucial [3] - Relying solely on sales and earnings metrics may not yield long-term returns; a deeper analysis of a company's financial health and stability is essential for sustainable investment growth [3] Financial Analysis - A critical analysis of a company's financial background, including coverage ratios, is necessary for informed investment decisions [4] - The Interest Coverage Ratio is a key indicator used to evaluate a company's ability to pay interest on its debt, ensuring it is not over-leveraged [4][6] Interest Coverage Ratio Insights - The Interest Coverage Ratio is calculated as Earnings before Interest & Taxes (EBIT) divided by Interest Expense [5] - A ratio lower than 1.0 indicates a company may struggle to meet its interest obligations, while a higher ratio suggests a stronger financial position [9] Company Performance - Hudbay Minerals Inc. (HBM), Sterling Infrastructure, Inc. (STRL), Molina Healthcare, Inc. (MOH), and Vertiv Holdings Co (VRT) have strong interest coverage ratios, indicating solid financial footing [10] - HBM and STRL posted over 40% EPS growth estimates, while VRT shows a growth potential of 24.9% [10] - MOH projects 8.4% sales growth and 7.9% EPS growth, despite a 19.3% stock decline over the past year [10] Stock Screening Criteria - Stocks should have an Interest Coverage Ratio greater than the industry average, a favorable Zacks Rank, and a VGM Score of A or B for better investment results [11] - Additional criteria include a minimum stock price of $5, strong historical and projected EPS growth, substantial trading volume, and a Zacks Rank of 1 or 2 [12][13] Company Highlights - Hudbay Minerals has a trailing four-quarter earnings surprise of 50% on average, with a Zacks Consensus Estimate suggesting growth of 9.2% in sales and 41.7% in EPS [14] - Sterling Infrastructure has a trailing four-quarter earnings surprise of 11.5% on average, with a projected EPS growth of 41.2% [15] - Molina Healthcare's Zacks Consensus Estimate indicates growth of 8.4% in sales and 7.9% in EPS [16] - Vertiv Holdings has a trailing four-quarter earnings surprise of 10.4% on average, with projected growth of 18.8% in sales and 24.9% in EPS [17]