Molina Healthcare (NYSE: MOH) reported Q1 EPS of $3.02, $0.08 better than the analyst estimate of $2.94. Revenue for the quarter came in at $4.55 billion versus the consensus estimate of $4.47 billion.

Quarter Highlights:

• Premium revenue was $4.3 billion for the first quarter of 2020, an 8.9% increase compared to the first quarter of 2019.
• Medical care ratio (MCR) was 86.3% for the first quarter of 2020, compared to 85.3% for the first quarter of 2019.
• General and administrative (G&A) expense ratio decreased to 7.0% for the first quarter of 2020, compared to 7.3% for the first quarter of 2019.
• After-tax margin was 3.9% for the first quarter of 2020, compared to 4.8% for the first quarter of 2019.
• Net income was $178 million for the first quarter of 2020, compared to $198 million for first quarter of 2019.
• Operating cash flows for the first quarter of 2020 were $136 million.
• The Company reaffirmed its full year 2020 earnings guidance range of $11.20 to $11.70 per diluted share.

“During this unprecedented time, our team has worked tirelessly to ensure that the needs of all of our constituencies continue to be addressed quickly and effectively,” said Joe Zubretsky, president and CEO. “While our financial results slightly exceeded our expectations, the true highlight of the quarter was the performance of our entire workforce and their rapid operational and clinical response across every dimension of the healthcare ecosystem: truly inspirational. Going forward, while COVID-19’s impact on the U.S. healthcare system and the overall economy may develop in unanticipated ways, we believe that, under all scenarios, government-sponsored health care will continue to play a critical role in addressing the crisis.”

GUIDANCE:

Molina Healthcare sees FY2020 EPS of $11.20-$11.70, versus the consensus of $11.84. Molina Healthcare sees FY2020 revenue of $18.3 billion, versus the consensus of $18.59 billion.

The Company reaffirmed its full year 2020 earnings guidance range of $11.20 to $11.70 per diluted share despite the inclusion of the following:

• The impact of lower yields on investment income.
• Incremental general and administrative expenses related to COVID-19.

Full year 2020 guidance does not include:

• Membership increases related to the impact of COVID-19 on unemployment. While Medicaid and Marketplace enrollment is likely to increase due to widespread unemployment, the timing and number of potential enrollees are not certain and, therefore, are excluded from full year 2020 guidance.
• Impact of COVID-19 on net medical cost. Due to the uncertainty of COVID-19’s impact on utilization and medical costs, its impact on net medical cost is excluded from full year 2020 guidance.
• Previously announced acquisitions that have not yet closed.

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