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Molina Healthcare, Inc. MOH reported third-quarter 2025 adjusted earnings per share (EPS) of $1.84, which missed the Zacks Consensus Estimate of $3.97. Also, the bottom line fell 69.4% from the year-ago period.
Total revenues amounted to $11.5 billion, which improved 11% year over year. The top line also beat the consensus mark by 5.3%.
The quarterly earnings were affected by higher medical care costs and general and administrative expenses. However, rising premiums and rate hikes partially offset the negatives.
Molina Healthcare, Inc price-consensus-eps-surprise-chart | Molina Healthcare, Inc Quote
Premium revenues of $10.8 billion increased 11.8% year over year in the quarter under review and beat the Zacks Consensus Estimate of $10.3 billion. The improvement stemmed from buyouts, rate hikes and an expanding nationwide footprint.
As of Sept. 30, 2025, total membership improved 0.5% year over year to around 5.6 million but missed the Zacks Consensus Estimate by 2%. The health insurer witnessed year-over-year increases in customers within its Medicare and Marketplace businesses.
Investment income declined 8.5% year over year to $108 million but beat the consensus mark of $99.9 million.
Total operating expenses of $11.3 billion increased 14.9% year over year and were higher than our model estimate of $10.5 billion due to a rise in medical care costs, coupled with higher general and administrative expenses. The adjusted general and administrative expense ratio decreased to 6.3% in the third quarter from 6.4% a year ago. Interest expenses of $49 million rose from $29 million in the prior year.
The consolidated medical care ratio (medical costs as a percentage of premium revenues), or MCR, was 92.6% in the quarter under review. The metric rose from 89.2% a year ago and was higher than the consensus mark of 90.3%. Also, the figure was higher than our estimate of 89.8%.
Molina Healthcare’s adjusted net income plunged 72% year over year to $97 million.
Molina Healthcare exited the third quarter with cash and cash equivalents of $4.2 billion, which declined from the 2024-end level of $4.7 billion. Total assets of $15.7 billion rose from $15.6 billion at 2024-end.
Long-term debt of $3.7 billion rose from $2.9 billion at 2024-end.
Total stockholders’ equity of $4.2 billion decreased from the $4.5 billion figure at 2024-end.
Net cash used in operating activities amounted to $237 million in the first nine months of 2025, against the $868 million cash generated in the first nine months of 2024.
Management now expects premium revenues to be around $42.5 billion, up from the previously projected figure of $42 billion, which indicates an improvement of around 10% from the 2024 reported figure. Adjusted EPS is now forecasted to be around $14 this year, which implies a reduction from its prior forecast figure of at least $19.
Adjusted net income is now projected to be $742 million, while GAAP net income is expected to be $630 million for 2025. The total membership was earlier estimated to be 5.9 million by the end of 2025. Consolidated MCR is likely to stay at 91.3%. It is also expected that the effective tax rate would be 21.7% in 2025.
MOH currently carries a Zacks Rank #5 (Strong Sell).
Here are three companies from the Medical space that are likely to report their respective quarterly earnings soon.
Exact Sciences Corporation EXAS has an Earnings ESP of +56.25% and a Zacks Rank #1 (Strong Buy) at present. The Zacks Consensus Estimate for EXAS’ third-quarter 2025 earnings is pegged at 10 cents per share. A loss of 21 cents per share was incurred in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Exact Sciences’ earnings beat estimates in three of the trailing four quarters and missed the mark once, the average surprise being 329.9%.
ANI Pharmaceuticals, Inc. ANIP has an Earnings ESP of +6.24% and a Zacks Rank of 2 (Buy) at present. The Zacks Consensus Estimate for ANIP’s third-quarter 2025 earnings is $1.74 per share, implying 29.9% growth from the year-ago quarter’s figure.
ANI Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, the average surprise being 22.7%.
Evercore Inc. EVR currently has an Earnings ESP of +12.21% and a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for EVR’s third-quarter 2025 earnings is pegged at $2.87 per share, indicating a 40.7% rise from the prior-year quarter’s number.
Evercore’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 44.1%.
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This article originally published on Zacks Investment Research (zacks.com).
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