Molina Healthcare Beats Up on Analysts Yet Again

Molina Healthcare (NYSE: MOH  ) reported earnings on Feb. 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Molina Healthcare beat expectations on revenues and crushed expectations on earnings per share.

Compared with the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped to a loss.

Gross margins improved, operating margins grew, net margins contracted.

Revenue details
Molina Healthcare reported revenue of $1.31 billion. The nine analysts polled by S&P Capital IQ expected sales of $1.21 billion on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $1.08 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.51. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.39 per share on the same basis. GAAP EPS were -$0.72 for Q4 against $0.39 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 20.5%, 30 basis points better than the prior-year quarter. Operating margin was 3.7%, 50 basis points better than the prior-year quarter. Net margin was -2.5%, 410 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.35 billion. On the bottom line, the average EPS estimate is $0.39.

Next year's average estimate for revenue is $5.90 billion. The average EPS estimate is $1.79.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 132 members out of 144 rating the stock outperform, and 12 members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 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 $24.32.

The health-care investing landscape is littered with also-rans and a few major winners. Is Molina Healthcare prepared for the future? Read "Discover the Next Rule-Breaking Multibagger" to learn about a company David Gardner believes will deliver amazing returns during the next few years. Get instant access to this free report.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1791539, ~/Articles/ArticleHandler.aspx, 9/17/2014 5:51:44 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement