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Molina Lifts Guidance on Improved Revenues, Profit Margins

Analysis  |  By Jack O'Brien  
   July 31, 2018

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."

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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.

Related: Molina Healthcare Reports $512-Million Loss for 2017

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 Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.


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