The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Molina Healthcare met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share grew.
Gross margins dropped, operating margins shrank, net margins grew.
Molina Healthcare booked revenue of $1.58 billion. The 11 analysts polled by S&P Capital IQ hoped for revenue of $1.57 billion on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $1.31 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 $0.54. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.22 per share. GAAP EPS were $0.54 for Q4 versus -$0.72 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 19.3%, 120 basis points worse than the prior-year quarter. Operating margin was 3.4%, 40 basis points worse than the prior-year quarter. Net margin was 1.6%, 410 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.61 billion. On the bottom line, the average EPS estimate is $0.29.
Next year's average estimate for revenue is $7.23 billion. The average EPS estimate is $1.43.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 127 members out of 139 rating the stock outperform, and 12 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Molina Healthcare a green thumbs-up, and five 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 $28.67.
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