NYSE$MOH

Molina Healthcare Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Molina Healthcare's financial performance was solid, marked by substantial revenue growth and strategic business integrations.

Molina Healthcare reported a GAAP EPS of $3.16 and an adjusted EPS of $3.40 for Q2 2021. The company served approximately 4.7 million members, an increase of 32% year-over-year. Premium revenue increased by 51% compared to the second quarter of 2020.

  • GAAP net income for the second quarter of 2021 was $185 million, or $3.16 per diluted share.
  • Adjusted net income for the second quarter of 2021 was $199 million, or $3.40 per diluted share.
  • The Company served approximately 4.7 million members, an increase of 1.1 million members, or 32%, compared to June 30, 2020.
  • Premium revenue was approximately $6.6 billion for the second quarter of 2021, an increase of 51% compared to the second quarter of 2020.

Headline financials

Total Revenue

$6.8B

Previous: $4.62B+47.2%
EPS (adj)

$3.40

Previous: $4.79-29.0%
Total Membership

4.7M

Previous: 3.6M+32.1%
Medicaid Membership

3.9M

Previous: 3.1M+25.8%
Medicare Membership

130.0K

Previous: 108.0K+20.4%
Marketplace Membership

638.0K

Previous: 325.0K+96.3%
Capital Expenditures

-$29M

Previous: -$45M+35.6%
Free Cash Flow

$156M

Previous: $231M-32.5%
Net Income

$185M

Previous: $276M-33.0%
Operating Income

$273M

Previous: $424M-35.6%
Gross Profit

$981M

Previous: $1.02B-3.8%
Cash & Equivalents

$4.61B

Previous: $3.3B+39.5%
Total Assets

$10.5B

Previous: $7.88B+33.7%
Stock-Based Comp

$11M

Previous: $16M-31.3%

Revenue & EPS history

Molina · Revenue · Quarterly

$6.8B

Q2 2021+47.2%vs Q2 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Molina · $8.04B total across 3 segments · Q2 2023

  • Medicaid
    $6.49B+2.9%
  • Medicare
    $1.04B+9.1%
  • Marketplace
    $513M-5.2%

Forward guidance

The Company now expects its full year 2021 total revenue to be more than $26.0 billion and adjusted earnings per share to be no less than $13.25 per share.

Tailwinds

  • Updated assumptions for the Public Health Emergency period, and the associated pause on Medicaid membership redeterminations, which is now expected to continue through the fourth quarter of 2021
  • Retention of pharmacy related premium in California, New York, and Kentucky
  • Underlying outperformance
  • Offset by an increase in the estimated net effect of COVID by $1.00 per share which is now expected to be approximately $2.50 per share for the full year
  • Continued caution in forecasting utilization trends in the remaining six months of the year due to the COVID pandemic

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+0.2%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+2.9%

Avg return

30 days after

41%

27 / 66 earnings

Positive

+26.3%

Q1 2017

Best reaction

-25.5%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.6%+21.2%+20.3%
Q4 2025-25.5%-30.6%-18.3%
Q3 2025-17.3%-16.5%-27.5%
Q2 2025+4.9%+8.8%+13.3%
Q1 2025-5.5%-3.7%-8.1%
Q4 2024-10.1%-13.9%+3.3%
Q3 2024+14.0%+11.0%+2.4%
Q2 2024+13.0%+16.1%+20.5%
Q1 2024-3.0%-5.3%-8.6%
Q4 2023+6.8%+9.9%+9.9%
Q3 2023-0.7%-1.7%+10.1%
Q2 2023-2.6%-3.5%+1.0%
Q1 2023+6.3%+9.4%-2.2%
Q4 2022-0.5%-1.1%-13.7%
Q3 2022-3.9%-2.0%-10.7%
Q2 2022+2.7%+5.3%+9.7%
Q1 2022-1.9%-4.7%-5.1%
Q4 2021-0.5%-0.0%+1.8%
Q3 2021-0.8%-0.5%-2.4%
Q2 2021-2.0%+5.4%+3.2%
Q1 2021+1.2%+2.2%+0.2%
Q4 2020+5.0%+5.0%+12.9%
Q3 2020-8.2%-2.5%+1.5%
Q2 2020-1.6%-0.5%-2.0%
Q1 2020+5.2%+9.9%+12.8%
Q4 2019+10.5%+13.3%+3.1%
Q3 2019-0.3%-4.4%+11.0%
Q2 2019-4.4%-7.0%-6.5%
Q1 2019+0.9%-0.2%+2.0%
Q4 2018-5.5%-1.1%+3.6%
Q3 2018-0.8%-0.9%+11.1%
Q2 2018+18.7%+23.1%+34.7%
Q1 2018-2.9%-1.2%+3.4%
Q4 2017-3.8%-8.1%-2.8%
Q3 2017+16.1%+13.7%+14.6%
Q2 2017-6.8%-12.4%-4.0%
Q1 2017+26.3%+30.8%+31.3%
Q4 2016-17.2%+1.6%-6.0%
Q3 2016-5.9%-7.0%-9.3%
Q2 2016+10.1%+8.1%+4.2%
Q1 2016-20.6%
Q4 2015-1.5%
Q3 2015-8.6%
Q2 2015+9.6%
Q1 2015+11.6%
Q4 2014+8.8%
Q3 2014+4.6%
Q2 2014-6.5%
Q1 2014+4.5%
Q4 2013-6.4%
Q3 2013-7.5%
Q2 2013-1.4%
Q1 2013+1.6%
Q4 2012+10.0%
Q3 2012+14.3%
Q2 2012-1.7%
Q1 2011-2.5%
Q1 2012+0.2%
Q4 2011-0.2%
Q1 2010-0.2%
Q4 2009-0.2%
Q3 2010+1.2%
Q3 2011+1.2%
Q2 2011-2.7%
Q4 2010-2.7%
Q2 2010-2.7%

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