NYSE$MOH

Molina Healthcare Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Molina Healthcare reported second quarter results and reaffirmed full year earnings guidance.

Molina Healthcare reported a strong second quarter with growth in premium revenue and adjusted earnings per share. The company reaffirmed its full year 2024 earnings guidance.

  • Served approximately 5.6 million members, an increase of 8% year over year.
  • Premium revenue increased by 17% year over year, reaching approximately $9.4 billion.
  • GAAP net income was $5.17 per diluted share, a decrease of 3% year over year.
  • Adjusted net income was $5.86 per diluted share, an increase of 4% year over year.

Headline financials

Total Revenue

$9.88B

Previous: $8.33B+18.7%
EPS

$5.17

Previous: $5.65-8.5%
Medical Care Ratio

88.6%

No prior period
GAAP G&A Ratio

7.0%

No prior period
Adjusted G&A Ratio

6.9%

No prior period
After-tax Margin

3.0%

No prior period
Adjusted After-tax Margin

3.5%

No prior period
Days in Claims Payable

50

No prior period
Medicaid MCR

90.8%

No prior period
Medicare MCR

84.9%

No prior period
Marketplace MCR

71.6%

No prior period
Total Membership

5.6M

Previous: 5.2M+7.3%
Medicaid Membership

4.9M

Previous: 4.7M+4.2%
Medicare Membership

251.0K

Previous: 166.0K+51.2%
Marketplace Membership

386.0K

Previous: 269.0K+43.5%
Capital Expenditures

-$54M

Previous: -$63M+14.3%
Free Cash Flow

$247M

Previous: $246M+0.4%
Net Income

$301M

Previous: $309M-2.6%
Operating Income

$434M

Previous: $443M-2.0%
Gross Profit

$1.51B

Previous: $1.29B+17.3%
Cash & Equivalents

$4.35B

Previous: $4.91B-11.3%
Total Assets

$15.2B

Previous: $13.7B+11.2%
Stock-Based Comp

$32M

Previous: $30M+6.7%

Revenue & EPS history

Molina · Revenue · Quarterly

$9.88B

Q2 2024+18.7%vs Q2 2023
Beat estimate in 11 of 15 quarters(73%)
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 reaffirmed its full year adjusted earnings per diluted share in 2024 to be at least $23.50.

Tailwinds

  • Premium revenue for the full year is expected to be approximately $38 billion, an increase of approximately 17% from the full year 2023.
  • The Company reaffirms its full year adjusted earnings per diluted share in 2024 to be at least $23.50, representing approximately 13% growth over the full year 2023.
  • Higher net investment income is expected.
  • The extension of Virginia and Florida contracts in the second half of the year is expected.
  • The Company’s known rate adjustments in the second half of the year are expected to largely offset higher expected trend in the second half of the year.

Headwinds

  • The Medicaid pressure experienced in the second quarter of 2024 is expected to be offset by higher net investment income and the extension of Virginia and Florida contracts in the second half of the year.
  • The Company’s known rate adjustments in the second half of the year are expected to largely offset higher expected trend in the second half of the year.
  • No other specific negatives were mentioned in the provided context.
  • No other specific negatives were mentioned in the provided context.
  • No other specific negatives were mentioned in the provided context.

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 2024

Historical avgQ2 2024

+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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