Molina Healthcare, Inc. (MOH) reported third-quarter 2024 adjusted earnings per share (EPS) of $6.01, which beat the Zacks Consensus Estimate of $5.96. Also, the bottom line grew 19% from the year-ago period.Total revenues amounted to $10.3 billion, which improved 20.9% year over year. Also, the top line outpaced the consensus mark by 3.8%.The strong third-quarter results were aided by membership growth in each of the business lines of Molina Healthcare. This, in turn, drove premiums, the most significant c ...

Financial Data and Key Metrics - Q3 2024 adjusted EPS was $6.01, in line with expectations, with premium revenue of $9.7 billion [4] - Consolidated MCR for Q3 was 89.2%, higher than expected due to medical cost pressures in Medicaid and Medicare segments [4] - Year-to-date consolidated MCR is 88.8%, slightly above the long-term target range, with an adjusted pre-tax margin of 4.5% [5] - Full-year 2024 guidance reaffirmed at $38 billion in premium revenue and at least $23.50 in EPS, representing 17% YoY growth in revenue and 13% YoY growth in EPS [9] Business Line Performance - Medicaid Q3 MCR was 90.5%, above the long-term target range, driven by higher medical costs and retroactive premium rate reductions in California [5][14] - Medicare Q3 MCR was 89.6%, above the long-term target range, with elevated LTSS and pharmacy costs [8] - Marketplace Q3 MCR was 73%, outperforming expectations despite higher SEP membership from redeterminations [8] - Adjusted G&A ratio for Q3 was 6.4%, reflecting effective cost management and one-time vendor credits [9] Market Performance - Medicaid membership at the end of Q3 was 4.9 million, stable compared to Q2, with reconnects from prior period terminations expected to drive future membership growth [16] - Medicare business in California performed in line with expectations, with higher outpatient utilization in Q3 [17] - Marketplace SEP membership growth was higher than historical averages, driven by Medicaid redeterminations, but with a healthier demographic profile [51] Strategy and Industry Competition - The company is focusing on dual-eligible integrated product businesses, with significant wins in Michigan and Massachusetts, projecting $1 billion in incremental premium revenue by 2027 [10][11] - The company plans to strategically focus on dual-eligible populations and low-income MAPD populations in California, while exiting MAPD products in 13 states starting in 2025 [12] - The acquisition of ConnectiCare is expected to close in Q1 2025, supporting the company's growth strategy and target of $46 billion in premium revenue by 2026 [13] Management Commentary on Operating Environment and Future Outlook - Management expects the short-term disparity between rates and medical cost trends to narrow, with known rate updates providing a $350 million benefit in H2 2024 [6][7] - The company remains cautiously optimistic about 2025 Medicaid rates, with 55% of Medicaid premiums renewing on January 1, 2025, and draft rates from several states being encouraging [7] - Management highlighted the importance of risk corridors in offsetting elevated medical cost trends, with expectations of operating within the long-term MCR target range in 2025 [7] Other Important Information - The company repurchased 1.5 million shares in Q3, with full-year guidance assuming 57.9 million shares outstanding [18] - Debt-to-capital ratio increased slightly to 35% in Q3, with debt at 1.4x trailing 12-month EBITDA [19] - Operating cash flow for the first nine months of 2024 was $868 million, lower than the prior year due to timing of risk corridor payments and CMS receipts [19] Q&A Session Summary Question: Marketplace Performance and Rebate Impact [25] - The company expects to maintain mid-single-digit pre-tax margins in the marketplace segment, with strong performance in 2024 and 2025 driven by excess margin reinvestment [25][26] Question: Medicaid MCR and Cost Trends [27] - Medicaid MCR is running 70 basis points higher than previous guidance, driven by higher utilization in LTSS, pharmacy, and behavioral health services, with no single factor dominating the trend [27][28] Question: Rate Updates and State Budgets [30] - The company received $345 million in pre-tax benefits from rate updates in H2 2024, with on-cycle rate adjustments averaging 4.5% in Q3 and 9% in Q4 [32] Question: Utilization Trends and Medical Management [33] - The company manages medical costs effectively, with net trends already reflecting cost management efforts, and expects to operate below state benchmarks in the future [33][34] Question: Clean Jumping-off Point for Q3 [37] - Adjusted Q3 Medicaid MCR was 90%, with a 50 basis point impact from a retroactive rate reduction in California, and full-year G&A ratio guidance at 6.8% [38] Question: Medicaid Acuity Shifts and Rate Updates [43] - The rate-setting process remains unchanged, with states recognizing the dramatic acuity shift caused by Medicaid redeterminations, leading to significant rate updates [44] Question: 2025 EPS Outlook and Embedded Earnings [46] - The company expects to harvest less than half of its $5.75 embedded earnings in 2025, with headwinds from declining interest rates and uncertainties around medical cost trends [47] Question: Marketplace SEP Membership and Revenue Recognition [50] - SEP membership in 2024 was significantly higher than historical averages, driven by Medicaid redeterminations, with revenue recognized only upon documented evidence of rate adjustments [51][54] Question: Core Trend and Acuity Mismatch [56] - Medicaid net trend increased from 3% to 6% in 2024, with a combination of rate updates and risk corridors helping to manage the mismatch between rates and costs [57][58] Question: Behavioral Health Utilization [59] - Behavioral health utilization is a national trend, with Kentucky experiencing a more pronounced increase due to a program change during the pandemic [60] Question: D-SNP Redeterminations and PYD Impact [63] - The company is bullish on its D-SNP business, with no significant headwinds expected from prior year development (PYD) in 2025 [65][66] Question: Risk Corridor Position [68] - The company started 2024 with 200 basis points of corridor protection, using approximately half of it during the year, with expectations of replenishing the corridor in 2025 [69][70][71] Question: State Rate Cycles and Corridor Positions [73] - Most states have some form of corridor protection, with annual or semi-annual rate reviews, and the company expects to use 100 basis points of corridor protection in 2024 [74][75]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission file number: 001-31719 MOLINA HEALTHCARE, INC. (Exact name of registrant as specified in its charter) De ...

For the quarter ended September 2024, Molina (MOH) reported revenue of $10.34 billion, up 21% over the same period last year. EPS came in at $6.01, compared to $5.05 in the year-ago quarter.The reported revenue represents a surprise of +3.80% over the Zacks Consensus Estimate of $9.96 billion. With the consensus EPS estimate being $5.96, the EPS surprise was +0.84%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectat ...

Molina (MOH) came out with quarterly earnings of $6.01 per share, beating the Zacks Consensus Estimate of $5.96 per share. This compares to earnings of $5.05 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 0.84%. A quarter ago, it was expected that this provider of Medicaid-related services would post earnings of $5.73 per share when it actually produced earnings of $5.86, delivering a surprise of 2.27%.Over the last four quar ...

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 ...

Molina Healthcare, Inc. (MOH) is set to report third-quarter 2024 results on Oct. 23, 2024, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter's earnings is currently pegged at $5.96 per share on revenues of $9.96 billion. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. The third-quarter earnings estimate has witnessed downward revisions over the past 60 days. However, the bottom-line projection indicates a year-over-year increase of 18%. The Zacks ...

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 ...