Molina Healthcare Q1 Earnings Beat Estimates on Growing Premiums

Core Viewpoint - Molina Healthcare Inc. reported strong first-quarter 2025 results, with adjusted EPS of $6.08, exceeding estimates and showing a year-over-year growth of 6.1% [1][2] Financial Performance - Total revenues reached$ 11.15 billion, reflecting a 12.2% year-over-year increase and slightly surpassing consensus estimates [1][3] - Premium revenues amounted to $10.63 billion, an 11.8% increase year over year, driven by contract wins, buyouts, and rate hikes, although partially offset by Medicaid redeterminations [3][4] - Total operating expenses were$ 10.7 billion, up 12.7% year over year, primarily due to rising medical care costs and higher administrative expenses [5][6] Membership and Income - Total membership increased by 0.4% year over year to approximately 5.8 million, although it fell short of consensus estimates by 3.3% [4] - Adjusted net income decreased by 0.3% year over year to $333 million [6] Financial Position - As of March 31, 2025, cash and cash equivalents rose to$ 4.9 billion from $4.7 billion at the end of 2024, while total assets increased to$ 16.4 billion [7] - Long-term debt increased to $3.6 billion from$ 2.9 billion at the end of 2024 [7][8] Guidance - The company reaffirmed its 2025 guidance, expecting premium revenues of around $42 billion, indicating a 9% improvement from 2024 [9] - Adjusted EPS is projected to be a minimum of$ 24.50, reflecting an 8% increase from the previous year [9][10]