Molina Healthcare (NYSE: MOH) reported Q1 EPS of $3.04, $0.60 better than the analyst estimate of $2.44. Revenue for the quarter came in at $4.12 billion versus the consensus estimate of $4.07 billion.

• Net income per diluted share was $2.99 in the first quarter of 2019 compared with $1.64 in the first quarter of 2018, which included a net benefit of $0.38 per diluted share for non-run-rate items
• After-tax margin improved to 4.8% in the first quarter of 2019 compared with 2.3% in the first quarter of 2018
• Medical care ratio was 85.3% in the first quarter, an improvement from 87.7% in the first quarter of 2018, excluding non-run-rate items in the first quarter of 2018
• Premium revenue was $4.0 billion in the first quarter of 2019, a 9% decrease compared with the first quarter of 2018, which was in line with the Company’s expectations
• The Company raised full year 2019 earnings guidance to $10.50 - $11.00 from $9.25 - $9.75, which does not include any future prior-period reserve development

“These results are a testament to the achievability of the second phase of our strategy, which is to sustain the attractive margin position we had built in 2018,” said Joe Zubretsky, president and CEO. “While certainly not conclusive, our first quarter results validate our position that durable financial and operational improvement can and should allow us to sustain these margins, all while we begin to grow the top line again.”

GUIDANCE:

Molina Healthcare sees FY2019 EPS of $10.50-$11.00, versus the consensus of $10.00. Molina Healthcare sees FY2019 revenue of $16.4 billion, versus the consensus of $16.33 billion.

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