Molina Healthcare(MOH) ZACKS·2025-03-07 17:36Core Viewpoint - Molina Healthcare's fourth-quarter 2024 earnings report showed mixed results, with adjusted EPS missing estimates but total revenues increasing significantly year over year. The company faces challenges from rising medical costs and lower-than-expected membership growth, which may impact future performance [2][3][4]. Financial Performance - Adjusted EPS for Q4 2024 was 5.81, but representing a 15.3% increase from the previous year [2]. - Total revenues reached 40.65 billion, up from 40.58 billion [4]. Operational Insights - Premium revenues in Q4 2024 were 10.1 billion, a 15.9% increase year over year, driven by higher medical care costs and administrative expenses [7]. - Investment income decreased by 2.6% year over year to 42 billion, indicating a 9% increase from 2024 [11]. - Adjusted EPS is projected to be at least $24.50, reflecting an 8% rise from the previous year [11]. - Total membership is anticipated to grow to 5.9 million by the end of 2025, with a consolidated MCR expected to remain at 88.7% [12]. Market Position and Trends - The consensus estimate for Molina has seen a downward trend, with a shift of -11.22% in the past month [13]. - The company currently holds a Zacks Rank 4 (Sell), indicating expectations of below-average returns in the near term [15]. - In comparison, Cigna, a competitor in the same industry, reported a revenue increase of 28.4% year over year, highlighting competitive pressures [16].