The Long Beach-based insurer continued a strong showing in the first half of 2018 after turbulent executive change and losses in 2017.
Molina Healthcare achieved premium revenue increases of $141 million as part of a positive Q2 earnings report released Tuesday afternoon.
The revenue increases prompted Molina to improve its end-of-year financial guidance, boosting its GAAP earnings per diluted share by $3 to between $7.15 and $7.35.
"Our second quarter results are a strong indication that the early stages of our margin recovery and sustainability plan are working," Joe Zubretsky, CEO of Molina, said in a statement. "Our focus on managed care fundamentals and a more rigorous performance management process is reflected in our improved earnings."
The quarterly earnings mark a shift for Molina, which saw significant financial upheaval following a major reorganization effort in 2017. The health plan is also considering a move into ACA markets in North Carolina, Wisconsin and Utah, despite uncertainity about the program's future.
Below are highlights from Molina's Q2 earnings report:
- The insurer posted a Q2 net income of $202 million, compared to a net loss of $230 million in Q2 2017.
- Its net income per diluted share also rose to $3.02 from $1.64 in Q1.
- Molina also repaid $300 million in outstanding debt in Q2, bringing their half-year total to $493 million.
Additional information is available in Molina's filing with the Securities and Exchange Commission.
Jack O'Brien is the finance editor at HealthLeaders, a Simplify Compliance brand.