The 10-second takeaway
For the quarter ended June 30 (Q2), Molina Healthcare met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share expanded. GAAP earnings per share expanded.
Margins increased across the board.
Molina Healthcare reported revenue of $1.61 billion. The 11 analysts polled by S&P Capital IQ looked for net sales of $1.61 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.34. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.31 per share. Non-GAAP EPS were $0.34 for Q2 compared to -$0.80 per share for the prior-year quarter. GAAP EPS were $0.53 for Q2 versus -$0.80 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 19.4%, 910 basis points better than the prior-year quarter. Operating margin was 2.9%, 680 basis points better than the prior-year quarter. Net margin was 1.5%, 390 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.73 billion. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $6.86 billion. The average EPS estimate is $1.61.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 136 members out of 148 rating the stock outperform, and 12 members rating it underperform. Among 46 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Molina Healthcare a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Molina Healthcare is outperform, with an average price target of $38.00.
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