The 10-second takeaway
For the quarter ended March 31 (Q1), Molina Healthcare met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share grew.
Margins shrank across the board.
Molina Healthcare reported revenue of $1.37 billion. The eight analysts polled by S&P Capital IQ foresaw a top line of $1.37 billion on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $1.12 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.39. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.38 per share. GAAP EPS of $0.39 for Q1 were 5.4% higher than the prior-year quarter's $0.37 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 17.7%, 70 basis points worse than the prior-year quarter. Operating margin was 2.4%, 40 basis points worse than the prior-year quarter. Net margin was 1.3%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.51 billion. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $6.00 billion. The average EPS estimate is $1.76.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 129 members out of 141 rating the stock outperform, and 12 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Molina Healthcare a green thumbs-up, and two 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 $36.60.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is 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 may not 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.