Molina Healthcare (NYSE:MOH), Inc.’s MOH first-quarter 2020 adjusted earnings of $3.02 per share missed the Zacks Consensus Estimate by 0.3% due to escalating expenses. Moreover, the bottom line slid 0.7% year over year.
However, total revenues of $4.5 billion surpassed the consensus mark by 2.7%. The top line rose 10.4% year over year on the back of increased membership.
Quarterly Operational Update
The company’s net income totaled $178 million, down 10.1% year over year.
Total operating expenses increased 11.4% year over year to $4.2 billion.
This deterioration was due to higher medical care costs, depreciation and amortization.
Molina Healthcare’s interest expenses dropped 8.7% year over year to $21 million.
Total membership by Government Program at the end of first quarter stands at 3.4 billion, up 0.3% year over year.
Financial Update
As of Mar 31, 2020, Molina Healthcare’s cash and cash equivalents decreased 3.5% to $2.3 billion from the level at 2019 end.
Total assets rose 5% from the level at 2019 end to $7.1 billion.
The company’s shareholder equity declined nearly 16% from the figure at 2019 end to $1.6 billion.
For the first quarter, net cash flow from operating activities stands at $136 million, down 45.4% year over year.
Share Repurchase Update
Molina Healthcare completed its $500-million share repurchase program.
In the first quarter, it bought back shares worth $450 million.
2020 Guidance
Following first-quarter results, the company reaffirmed its full-year outlook.
It now expects earnings in the range of $11.20-$11.70 per share.
For the current year, the company anticipates total revenues to be $18.3 billion.
Zacks Rank and Performance of Other Players
Molina Healthcare carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among other players from the medical sector that reported first-quarter results so far, the bottom-line results of Centene (NYSE:CNC) Corp. CNC and Anthem (NYSE:ANTM) Inc. ANTM lagged the Zacks Consensus Estimate while that of Humana Inc (NYSE:HUM). HUM beat the same.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Humana Inc. (HUM): Free Stock Analysis Report
Molina Healthcare, Inc (MOH): Free Stock Analysis Report
Centene Corporation (CNC): Free Stock Analysis Report
Anthem, Inc. (ANTM): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research