Molina Healthcare Earnings: What To Look For From MOH

Healthcare insurance company Molina Healthcare (NYSE:MOH) will be reporting earnings this Thursday after market close. Here’s what you need to know.

Molina Healthcare beat analysts’ revenue expectations by 4.6% last quarter, reporting revenues of $11.48 billion, up 11% year on year. It was a slower quarter for the company, with a significant miss of analysts’ full-year EPS guidance estimates and a significant miss of analysts’ EPS guidance for next quarter estimates. It lost -118,000 customers and ended up with a total of 5.63 million.

Is Molina Healthcare a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Molina Healthcare’s revenue to grow 4.5% year on year to $10.97 billion, slowing from the 16% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.33 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Molina Healthcare has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.9% on average.

Looking at Molina Healthcare’s peers in the healthcare providers & services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. UnitedHealth delivered year-on-year revenue growth of 12.3%, meeting analysts’ expectations, and Elevance Health reported revenues up 9.6%, falling short of estimates by 1.2%. UnitedHealth traded down 16.4% following the results while Elevance Health was up 7.5%.

Read our full analysis of UnitedHealth’s results here and Elevance Health’s results here.

Investors in the healthcare providers & services segment have had fairly steady hands going into earnings, with share prices down 1.7% on average over the last month. Molina Healthcare’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $186.69 (compared to the current share price of $180.90).

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