Molina Healthcare Earnings: Here’s Why the Stock is Down Now

Molina Healthcare Inc. (NYSE:MOH) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.12%.

Molina Healthcare Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.34 in the quarter versus EPS of $-0.80 in the year-earlier quarter.

Revenue: Rose 4.52% to $1.61 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Molina Healthcare Inc. reported adjusted EPS income of $0.34 per share. By that measure, the company beat the mean analyst estimate of $0.31. It missed the average revenue estimate of $1.61 billion.

Quoting Management: “Our operating performance during the second quarter remained strong. We continued to strengthen our capital position, and, in anticipation of the full implementation of health reform, we increased our capacity to serve a significant number of new members,” said J. Mario Molina, M.D., chief executive officer of Molina Healthcare, Inc. “We expect our previously announced transaction in New Mexico to accelerate our growth in that state beginning in the third quarter.”

Key Stats (on next page)…

Revenue increased 0.95% from $1.59 billion in the previous quarter. EPS decreased 46.88% from $0.64 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.37 to a profit $0.33. For the current year, the average estimate has moved up from a profit of $1.56 to a profit of $1.61 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)