Molina Healthcare: Strong Revenue Growth, But Earnings Miss
Financial Highlights:
- Revenue: $10.5 billion (up 16% YoY), beating estimates by 1.9%
- GAAP EPS: $4.44 (down 19% YoY), missing estimates by 19%
- Adjusted EBITDA: $446 million (up 13.8% YoY), missing estimates by 4.2%
Revenue Guidance:
- 2025 midpoint guidance: $44 billion (up 8.2% YoY), exceeding estimates by 1.4%
Earnings Guidance:
- 2025 midpoint guidance: $22.50 (down 8.6% YoY), missing estimates
Company Overview:
Molina Healthcare (NYSE:MOH) provides health insurance to individuals and families through government-sponsored programs like Medicare and Medicaid.
Industry Landscape:
Health insurers face tailwinds from an aging population, personalized healthcare demand, and cost management advancements. However, regulatory pressures, potential government reforms, and rising medical costs add volatility.
Sales Growth:
Molina Healthcare has achieved impressive revenue growth:
- 5-year CAGR: 19.3%
- 2-year CAGR: 12.8%
- 16% YoY growth in Q4
Operating Margin:
- Molina Healthcare's operating margin is 4.2%, below industry average
- Margin declined by 1.4 percentage points over the last five years
Earnings Per Share (EPS):
- 5-year CAGR: 12.2%
- EPS missed analyst estimates in Q4
- 19.4% EPS growth expected over the next 12 months
Key Takeaways:
- Molina Healthcare's revenue guidance exceeded expectations.
- EPS missed estimates, and full-year guidance is below analysts' consensus.
- The stock fell 9.2% following the results.
Investment Considerations:
The company's long-term business quality and valuation should be considered when making investment decisions. For a more comprehensive analysis, consult our full research report.