One Thing You Should Note About Molina's Q1 Earnings Per Share Figure

Molina Healthcare, Inc. (NYSE: MOH) announced first-quarter results Tuesday following an earlier announcement concerning the ouster of its CEO and chief financial officer, both sons of the healthcare company's founder.

The 'Adjusted, Adjusted' Earnings

Stifel in a note looked at what it termed as the "adjusted, adjusted" first-quarter measure. Analysts Thomas Carroll and Mark Kelly clarified the adjusted earnings per share of $1.47 Molina reported for the first quarter was not adjusted for the one-time benefit from the Humana Inc (NYSE: HUM) termination fee of $0.84 per share.

Accordingly, the analysts viewed the adjusted earnings per share as $0.63, which is ahead of the $0.58 per share consensus estimate. The analysts said the earnings suggest the business has not continued to deteriorate from prior expectations provided on the fourth quarter.

Guidance Essentially Unchanged

The analysts noted the company essentially reiterated its 2017 earnings per share guidance of $2.09, which was adjusted higher to include the Humana payment and communicated as $2.90.

"In our view, this measure is not the appropriate point to consider 2018 and beyond," the analysts said.

Stifel raised its 2017 earnings per share estimate to $2.09 from $1.95 and 2018 estimate to $3.10 from $3, although clarifying it has little confidence in this estimate.

"In light of many uncertainties with the MOH business along with the change in leadership, we are moving our estimate to guidance and will work to establish a forecast with better confidence," the firm said to clarify the upward adjustment.

Remaining At Hold

Stifel said it does not see shares of the company doubling in the foreseeable future, given many uncertainties. The firm maintains its Hold rating and $47 price target for the shares of Molina.

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