Revenue and Membership Growth - Premium revenue for Q3 2024 was $9.7 billion, an 18% increase year-over-year[2][3] - The company served approximately 5.6 million members as of September 30, 2024, an 8% increase year-over-year[2] - Full-year 2024 premium revenue guidance remains unchanged at approximately $38 billion, a 17% increase from 2023[10] - Total membership increased to 5,598,000 in Q3 2024 from 4,995,000 in Q4 2023, with Medicaid membership reaching 4,941,000[24] - Premium revenue for Medicaid in Q3 2024 was $7,668 million, with a medical margin of $730 million and an MCR of 90.5%[25] - Consolidated premium revenue for Q3 2024 was $9,694 million, with a medical margin of $1,051 million and an MCR of 89.2%[25] Net Income and Earnings Per Share - GAAP net income for Q3 2024 was $5.65 per diluted share, a 34% increase year-over-year[2][4] - Adjusted net income for Q3 2024 was $6.01 per diluted share, a 19% increase year-over-year[2][4] - Full-year 2024 adjusted earnings per diluted share guidance remains unchanged at least $23.50, representing 13% growth over 2023[10] - Net income for Q3 2024 was $928 million, up from $875 million in Q3 2023[22] - GAAP Net income for 2024 is $326 million, or $5.65 per diluted share, compared to $245 million, or $4.21 per diluted share in 2023[33] - Adjusted net income for 2024 is $347 million, or $6.01 per diluted share, compared to $294 million, or $5.05 per diluted share in 2023[33] - 2024 guidance projects GAAP Net income of $1.25 billion, or $21.59 per diluted share[35] - Adjusted net income for 2024 is projected at $1.36 billion, or $23.50 per diluted share[35] Medical Care Ratio and Cost Management - The consolidated Medical Care Ratio (MCR) for Q3 2024 was 89.2%, reflecting focus on managing medical costs[5] - The G&A ratio for Q3 2024 was 6.5%, reflecting disciplined cost management and one-time credits[7] - Days in Claims Payable decreased to 48 days in Q3 2024 from 51 days in Q3 2023[28] - Medical claims and benefits payable ending balance was $4,732 million in Q3 2024, up from $4,204 million in Q4 2023[29] Cash Flow and Financial Position - Cash and investments at the parent company were $195 million as of September 30, 2024, down from $742 million at the end of 2023[8] - Operating cash flow for the nine months ended September 30, 2024 was $868 million, compared to $2,352 million for the same period in 2023[9] - Net cash provided by operating activities was $868 million in Q3 2024, down from $2,352 million in Q3 2023[22] - Total liabilities increased to $10,988 million in Q3 2024 from $10,677 million in Q4 2023[20] - Total stockholders' equity increased to $4,770 million in Q3 2024 from $4,215 million in Q4 2023[20] Non-GAAP Measures and Adjustments - Adjusted net income and adjusted after-tax margin are used as non-GAAP measures to assess financial performance[31][32] - Total adjustments for 2024 include $21 million for amortization of intangible assets, $11 million for acquisition-related expenses, and $(7) million for other adjustments[33] - The nine months ended September 30, 2024, include non-recurring litigation and one-time termination benefits, totaling $16 million[33] - Adjustments for 2024 guidance include $148 million for amortization of intangible assets, acquisition-related expenses, and other adjustments[35] - The income tax effect for 2024 guidance is calculated at a statutory tax rate of approximately 25.5%, resulting in a $38 million adjustment[35]

In its upcoming report, Molina (MOH) is predicted by Wall Street analysts to post quarterly earnings of $5.96 per share, reflecting an increase of 18% compared to the same period last year. Revenues are forecasted to be $9.96 billion, representing a year-over-year increase of 16.5%.The consensus EPS estimate for the quarter has been revised 1.1% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during th ...

Core Viewpoint - Molina Healthcare, Inc. is expected to report third-quarter 2024 results on October 23, 2024, with earnings estimated at $5.96 per share and revenues of $9.96 billion, reflecting year-over-year growth in both metrics [1][2]. Earnings Estimates - The earnings estimate for the third quarter has seen downward revisions over the past 60 days, but still indicates an 18% year-over-year increase, while revenue is projected to grow by 16.5% year-over-year [2]. - Molina Healthcare has a history of exceeding earnings estimates, having beaten the consensus in the last four quarters with an average surprise of 3.1% [3]. Earnings Prediction Model - The current model does not predict a definitive earnings beat for Molina Healthcare, as it has an Earnings ESP of -0.49% and a Zacks Rank of 3 (Hold) [4]. Factors Influencing Q3 Results - Growth in the Medicaid and Medicare customer base is expected to drive premium growth, with a consensus estimate indicating a 16.4% year-over-year increase in premiums [5]. - Medicaid premiums are projected to exceed $7.4 billion, reflecting over 10% growth year-over-year, while Medicare premiums are expected to reach $1.48 billion, up 43.1% year-over-year [5][6]. - Membership growth in Medicaid is anticipated to increase by 5.5% year-over-year, while Medicare membership is projected to grow by 47.2% [6]. - A favorable interest rate environment is likely to enhance investment income, with a consensus estimate indicating a 4.5% rise year-over-year [6]. Cost and Expense Outlook - The consensus for the medical care ratio (MCR) in the Marketplace is set at 81.98%, up from 78.90% a year ago, indicating higher medical expenses [7]. - Total operating expenses are expected to increase by more than 15% year-over-year due to rising medical care costs and general administrative expenses [7]. Stock Performance and Valuation - Molina Healthcare's stock has declined by 19.9% year-to-date, underperforming the industry growth of 3% and significantly lagging behind the S&P 500's 22.5% increase [8]. - The company's current valuation is at 11.17X forward 12-month earnings, below its five-year median of 15.16X and the industry average of 16.05X [10]. Growth Prospects - Molina Healthcare is expected to see consistent revenue growth due to contract wins and increasing memberships in its Marketplace unit [12]. - The company has a return on equity of 28.1%, surpassing the industry average of 23.9%, indicating effective utilization of shareholder funds [12]. - The long-term debt to capital ratio stands at 33%, lower than the industry average of 38.3%, providing financial flexibility [12].

Author of the Macro Trends & Inflection Points Newsletter. I spent 5 years as a co-founder and hedge fund CIO / manager. Before that, I was a hedge fund analyst/portfolio manager at a leading Canadian alternative asset manager. I write articles as part of my own due diligence on the stocks that I find interesting.Follow my twitter or substack for my thoughts on the macro trends. Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to ...

Wall Street expects a year-over-year increase in earnings on higher revenues when Molina (MOH) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on October 23, 2024, might help the stock move higher if these key numbers are better than expe ...

Molina Healthcare, Inc. (MOH) , a multi-state managed care company, continues to benefit on the back of growing premiums, contract wins, acquisitions and a sound financial position. A solid 2024 earnings per share outlook also reinforces investors' confidence in the stock. The company's shares have gained 15.4% in the past three months, outpacing the industry and S&P 500 Composite's growth of 14.6% and 2.6%, respectively. MOH stock is currently trading at $355.15, well below its 52-week high of $423.92, sug ...

Core Viewpoint - Molina Healthcare has shown strong performance in its second-quarter earnings, driven by membership growth and increased revenues, despite rising medical care costs and operational challenges [2][3][5]. Financial Performance - Adjusted EPS for Q2 2024 was $5.86, exceeding the Zacks Consensus Estimate by 2.3% and reflecting a 3.7% increase year-over-year [2]. - Total revenues reached $9.9 billion, marking an 18.7% year-over-year growth and surpassing the consensus estimate by 0.9% [2]. - Premium revenues amounted to $9.4 billion, up 17.5% year-over-year, exceeding both the Zacks Consensus Estimate and internal estimates [5]. Membership and Growth - Total membership increased by 8% year-over-year to approximately 5.6 million, meeting consensus estimates [6]. - Membership growth was observed across Medicaid, Medicare, and Marketplace segments [6]. Acquisition Activity - Molina Healthcare has agreed to acquire ConnectiCare for $350 million, representing 25% of the estimated premium revenues for 2024 [4]. - The acquisition is expected to close in the first half of next year and will be funded with cash on hand [4]. Operational Metrics - Total operating expenses rose by 19.8% year-over-year to $9.4 billion, driven by increased medical care costs and administrative expenses [7]. - The consolidated medical care ratio (MCR) was 88.6%, up from 87.5% a year ago, indicating higher medical costs relative to premium revenues [8]. Financial Position - As of June 30, 2024, Molina had cash and cash equivalents of $4.4 billion, down from $4.8 billion at the end of 2023 [9]. - Total assets increased to $15.2 billion, while total stockholders' equity rose to $4.8 billion from $4.2 billion at the end of 2023 [10]. Future Guidance - Management expects premium revenues to reach around $38 billion in 2024, indicating a 17% increase from 2023 [11]. - Adjusted EPS is projected to be at least $23.50 for 2024, reflecting a 13% rise from the previous year [11]. - Total membership is anticipated to grow to 5.7 million by the end of 2024, representing a 14.7% increase from 2023 [12].

Molina Healthcare, Inc. (MOH) benefits on the back of growing premiums, contract wins, acquisitions and a sound financial position. A solid 2024 earnings per share outlook also reinforces investors' confidence in the stock. Zacks Rank & Price Performance Molina Healthcare currently carries a Zacks Rank #3 (Hold). The stock has gained 20.9% in the past month compared with the industry's 3.5% growth. The Zacks Medical sector has rallied 2.6% while the S&P 500 composite dipped 0.6% in the same time frame. Imag ...

objectives. Competition is particularly intense within the government-managed care segment, where Molina Healthcare has a significant presence. Molina Healthcare's recent earnings beat and positive future guidance paint a bullish picture for the company's prospects. Its focus on the government-managed care segment and its acquisition strategy positions it for continued growth in the coming years. However, investors must also consider the inherent risks associated with the healthcare industry. Before you con ...

Equinor ASA (EQNR) reported second-quarter 2024 adjusted earnings per share of 84 cents, which beat the Zacks Consensus Estimate of 81 cents. However, the bottom line declined from the year-ago quarter's figure of 89 cents. Segmental Analysis E&P International: The segment's adjusted operating profit totaled $699 million, down 12% from the yearago quarter's figure of $797 million. The decline can be attributed to the higher adjusted operating and administrative expenses in the second quarter compared to tha ...