Molina Healthcare (MOH) Tops Q1 EPS by 96c, Miss on Revenues; Boosts FY18 EPS Guidance, Lowers FY18 Revenue Guidance

Molina Healthcare (NYSE: MOH) reported Q1 EPS of $1.71, $0.96 better than the analyst estimate of $0.75. Revenue for the quarter came in at $4.65 billion versus the consensus estimate of $4.72 billion.

• Net income increases to $1.64 per diluted share from $1.37 in the first quarter of 2017.
• First quarter results include a net benefit of $0.38 per diluted share for the net impact of the reconciliation of 2017 Marketplace cost sharing reduction (CSR) subsidies and other items not included in the Company’s preliminary 2018 guidance. First quarter 2017 results had included a benefit of $0.84 per diluted share from the termination fee for a proposed acquisition.
• Premium revenue decreases 7.0% compared with the first quarter of 2017, as expected with the Company’s repositioning of Marketplace operations.
• Medical care ratio decreases to 86.1% from 88.4% in the first quarter of 2017.
• General and administrative expense ratio decreases to 7.6% from 8.9% in the first quarter of 2017.
• 2018 guidance increased by $1.00 per diluted share to a range of $4.00–$4.50 net income per diluted share and $4.24–$4.74 adjusted net income per diluted share.
• Revised 2018 guidance includes the net benefit of $0.38 per diluted share for items noted above that were not included in the Company’s preliminary 2018 guidance and $0.62 per diluted share in improved performance against the Company’s original internal estimates for the full year of 2018.

GUIDANCE:

Molina Healthcare sees FY2018 EPS of $4.24-$4.74, versus the consensus of $3.63. Molina Healthcare sees FY2018 revenue of $18.7 billion, versus the consensus of $18.83 billion.

For earnings history and earnings-related data on Molina Healthcare (MOH) click here.

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