Earnings Outlook For Molina Healthcare
Molina Healthcare (NYSE:MOH) is gearing up to announce its quarterly earnings on Wednesday, 2025-07-23. Here's a quick overview of what investors should know before the release.
Analysts are estimating that Molina Healthcare will report an earnings per share (EPS) of $5.92.
Investors in Molina Healthcare are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.
It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.
Historical Earnings Performance
In the previous earnings release, the company beat EPS by $0.12, leading to a 5.48% drop in the share price the following trading session.
Here's a look at Molina Healthcare's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 5.96 | 5.88 | 5.94 | 5.55 |
| EPS Actual | 6.08 | 5.05 | 6.01 | 5.86 |
| Price Change % | -5.0% | -10.0% | 18.0% | 12.0% |
Market Performance of Molina Healthcare's Stock
Shares of Molina Healthcare were trading at $176.44 as of July 21. Over the last 52-week period, shares are down 37.35%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.
Analyst Observations about Molina Healthcare
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Molina Healthcare.
Analysts have given Molina Healthcare a total of 7 ratings, with the consensus rating being Neutral. The average one-year price target is $336.43, indicating a potential 90.68% upside.
Peer Ratings Overview
In this analysis, we delve into the analyst ratings and average 1-year price targets of HealthEquity, Centene and Alignment Healthcare, three key industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for HealthEquity, with an average 1-year price target of $116.88, suggesting a potential 33.76% downside.
- Analysts currently favor an Neutral trajectory for Centene, with an average 1-year price target of $50.93, suggesting a potential 71.13% downside.
- Analysts currently favor an Neutral trajectory for Alignment Healthcare, with an average 1-year price target of $17.0, suggesting a potential 90.36% downside.
Peer Analysis Summary
The peer analysis summary offers a detailed examination of key metrics for HealthEquity, Centene and Alignment Healthcare, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Molina Healthcare | Neutral | 12.24% | $1.28B | 6.77% |
| HealthEquity | Outperform | 15.04% | $224.31M | 2.54% |
| Centene | Neutral | 15.38% | $5.20B | 4.83% |
| Alignment Healthcare | Neutral | 47.46% | $106.03M | -8.76% |
Key Takeaway:
Molina Healthcare ranks in the middle among peers for revenue growth. It is at the bottom for gross profit and return on equity.
Get to Know Molina Healthcare Better
Molina Healthcare Inc offers healthcare plans focused on Medicaid-related solutions for low-income families and individuals. Its health plans are operated by a network of subsidiaries, each of which is licensed as a health maintenance organization (HMO). It has four segments: Medicaid, Medicare, Marketplace and Others. The Medicaid, Medicare, and Marketplace segments represent the government-funded or sponsored programs under which it offers managed healthcare services. The Other segment, which is insignificant to its consolidated results of operations, includes long-term services and supports consultative services in Wisconsin. It generates majority revenue from Medicaid segment.
Molina Healthcare's Financial Performance
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Revenue Growth: Molina Healthcare displayed positive results in 3 months. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 12.24%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.
Net Margin: Molina Healthcare's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 2.67%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Molina Healthcare's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 6.77% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Molina Healthcare's ROA stands out, surpassing industry averages. With an impressive ROA of 1.86%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: Molina Healthcare's debt-to-equity ratio is below the industry average at 0.87, reflecting a lower dependency on debt financing and a more conservative financial approach.
To track all earnings releases for Molina Healthcare visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
