Molina Healthcare
The 10-second takeaway
For the quarter ended June 30 (Q2), Molina Healthcare beat slightly on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share contracted to a loss.
Margins dropped across the board.
Revenue details
Molina Healthcare notched revenue of $1.54 billion. The 11 analysts polled by S&P Capital IQ predicted revenue of $1.52 billion on the same basis. GAAP reported sales were 32% higher than the prior-year quarter's $1.17 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at -$0.80. The 13 earnings estimates compiled by S&P Capital IQ predicted -$0.02 per share. GAAP EPS were -$0.80 for Q2 compared to $0.38 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 10.3%, 840 basis points worse than the prior-year quarter. Operating margin was -3.9%, 660 basis points worse than the prior-year quarter. Net margin was -2.4%, 390 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $1.51 billion. On the bottom line, the average EPS estimate is -$0.10.
Next year's average estimate for revenue is $5.98 billion. The average EPS estimate is -$0.31.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 128 members out of 141 rating the stock outperform, and 13 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Molina Healthcare a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Molina Healthcare is hold, with an average price target of $27.18.
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