Molina Healthcare Q3 Earnings Miss Estimates on Rising Expenses

Core Insights - Molina Healthcare, Inc. (MOH) reported Q3 2025 adjusted EPS of $1.84, missing the Zacks Consensus Estimate of $3.97, and a 69.4% decline from the previous year [1][10] - Total revenues reached $11.5 billion, reflecting an 11% year-over-year increase and surpassing the consensus estimate by 5.3% [1][10] Financial Performance - Premium revenues amounted to $10.8 billion, an 11.8% increase year over year, exceeding the Zacks Consensus Estimate of $10.3 billion, driven by buyouts, rate hikes, and an expanding footprint [3] - Total operating expenses rose 14.9% year over year to $11.3 billion, higher than the model estimate of $10.5 billion, primarily due to increased medical care costs and general administrative expenses [5] - The consolidated medical care ratio (MCR) was 92.6%, up from 89.2% a year ago, and above the consensus mark of 90.3% [6][10] Membership and Income - Total membership increased by 0.5% year over year to approximately 5.6 million, although it fell short of the Zacks Consensus Estimate by 2% [4] - Adjusted net income plummeted 72% year over year to $97 million [6] Cash Flow and Guidance - Cash and cash equivalents at the end of Q3 were $4.2 billion, down from $4.7 billion at the end of 2024 [7] - Management revised premium revenue guidance to approximately $42.5 billion for 2025, indicating a 10% improvement from 2024, while adjusted EPS is now forecasted to be around $14, down from a previous estimate of at least $19 [9][11]