UPDATE: Molina Healthcare (MOH) Tops Q2 EPS by 6c, Revenues Miss; Offers, FY20 Revenue Guidance Above Consensus, FY20 EPS Guidance Below Consensus
Molina Healthcare (NYSE: MOH) reported Q2 EPS of $4.79, $0.06 better than the analyst estimate of $4.73. Revenue for the quarter came in at $4.37 billion versus the consensus estimate of $4.72 billion.
Quarter Highlights:
- Premium revenue was $4.4 billion for the second quarter of 2020, an 8.0% increase compared to the second quarter of 2019.
- Medical care ratio (MCR) was 82.3% for the second quarter of 2020, compared to 85.6% for the second quarter of 2019.
- General and administrative (G&A) expense ratio decreased to 7.5% for the second quarter of 2020, compared to 7.8% for the second quarter of 2019.
- After-tax margin was 6.0% for the second quarter of 2020, compared to 4.7% for the second quarter of 2019.
- Net income was $276 million for the second quarter of 2020, compared to $196 million for second quarter of 2019.
- The Company estimates that the impacts of COVID-19 increased second quarter after-tax income by approximately $65 million to $100 million, or $1.10 to $1.65 per diluted share.
- The Company’s full year earnings guidance range remains at $11.20 to $11.70 per diluted share.
- The Company introduced full year 2021 premium revenue guidance of approximately $21.5 billion, or 20% growth over 2020.
“Despite the unprecedented environment of the ongoing COVID-19 pandemic, our company performed well in the second quarter,” said Joe Zubretsky, President and CEO. “Most importantly, we worked tirelessly to make sure our members, provider partners, state and federal government customers, as well as our 10,000 associates, were well served and cared for in this clinically and economically challenging time.”
Mr. Zubretsky continued, “We also delivered on our performance commitments in the quarter, producing solid earnings and cash flow, executing on our revenue growth strategy, and putting the finishing touches on our two year-long process to optimize our capital structure. We are very pleased with these achievements, particularly with the COVID-19 challenges we faced.”
GUIDANCE:
Molina Healthcare sees FY2020 EPS of $11.20-$11.70, versus the consensus of $11.94.
Molina Healthcare sees FY2020 revenues of $21.5 billion, versus the consensus of $18.96 billions.
For earnings history and earnings-related data on Molina Healthcare (MOH) click here.