Molina Healthcare, Inc. (MOH) is aided by a growing Medicaid and Medicare customer base, contract wins, acquisitions and a sound financial position.Zacks Rank & Price PerformanceMolina Healthcare currently carries a Zacks Rank #3 (Hold).The stock has gained 1.9% in the past six months against the industry’s 0.4% decline.Image Source: Zacks Investment ResearchMOH’s Favorable Style ScoreMOH is well-poised for progress, as evidenced by its impressive VGM Score of A. Here, V stands for Value, G for Growth and M ...

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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium includes access to the Zacks Style Scores as we ...

Molina Healthcare, Inc. MOH recently announced that it has secured significant wins by expanding its services to dual-eligible populations in Michigan and Idaho. In Michigan, the Michigan Department of Health and Human Services has awarded Molina Healthcare of Michigan a contract for its Highly Integrated Dual Eligible Special Needs Plan. Molina Healthcare of Idaho has been selected to administer the state’s Medicare Medicaid Coordinated Plan and Idaho Medicaid Plus Plan. This move bodes well for MOH as the ...

It has been about a month since the last earnings report for Molina (MOH) . Shares have lost about 8.5% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Molina due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Molina Healthcare Q3 Earnings Beat Estimates on Growing P ...

I consider Molina Healthcare (NYSE: MOH ) a great investment opportunity. From 2018 to 2024 Q3 TTM, the company's revenues and net income have grown by 107.51% and 61.81%, respectively. In addition, Molina Healthcare has expanded its operation to seven States in the United StatesDaniel Mellado is an economist from Carabobo University with a Master's Degree in Statistics from Simon Bolivar University, both obtained in Venezuela.Daniel worked analyzing the agricultural commodity market and the financial inves ...

Key TakeawaysShares of Molina Healthcare surged on Thursday after the health insurer reported strong results for the third quarter of 2024.Molina reported a year-over-year increase in premium revenue, despite issues related to Medicaid redeterminations.The company said new contract wins, footprint expansion and acquisitions contributed to revenue growth. Molina Healthcare (MOH) shares skyrocketed 18%, scoring one of the top performances among S&P 500 stocks on Thursday, after the health insurer reported bet ...

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 ...