NYSE$MOH

Molina Healthcare Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported third quarter earnings and reaffirmed full year earnings guidance.

Molina Healthcare reported a strong third quarter in 2024, with GAAP earnings per diluted share of $5.65 and adjusted earnings per diluted share of $6.01. The company reaffirmed its full year 2024 guidance, expecting premium revenue of approximately $38 billion and adjusted earnings of at least $23.50 per diluted share.

  • Served approximately 5.6 million members, an increase of 8% compared to the previous year.
  • Premium revenue was approximately $9.7 billion, an increase of 18% year-over-year.
  • GAAP net income was $5.65 per diluted share, an increase of 34% year-over-year.
  • Adjusted net income was $6.01 per diluted share, an increase of 19% year-over-year.

Headline financials

Total Revenue

$10.3B

Previous: $8.55B+21.0%
EPS

$5.65

Previous: $5.05+11.9%
Medical Care Ratio

89.2%

No prior period
GAAP G&A Ratio

6.5%

No prior period
Adjusted G&A Ratio

6.4%

No prior period
After-tax Margin

3.2%

No prior period
Adjusted After-tax Margin

3.4%

No prior period
Days in Claims Payable

48

No prior period
Medicaid MCR

90.5%

No prior period
Medicare MCR

89.6%

No prior period
Marketplace MCR

73.0%

No prior period
Total Membership

5.6M

Previous: 5.2M+7.5%
Medicaid Membership

4.9M

Previous: 4.8M+3.9%
Medicare Membership

247.0K

Previous: 173.0K+42.8%
Marketplace Membership

410.0K

Previous: 276.0K+48.6%
Capital Expenditures

-$89M

Previous: -$89M+0.0%
Free Cash Flow

$237M

Previous: $156M+51.9%
Net Income

$326M

Previous: $245M+33.1%
Operating Income

$467M

Previous: $359M+30.1%
Gross Profit

$1.7B

Previous: $1.24B+36.6%
Cash & Equivalents

$4.73B

Previous: $5.57B-15.0%
Total Assets

$15.8B

Previous: $14.9B+6.0%
Stock-Based Comp

$30M

Previous: $33M-9.1%

Revenue & EPS history

Molina · Revenue · Quarterly

$10.3B

Q3 2024+21%vs Q3 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 2024 guidance with expected premium revenue of approximately $38 billion and adjusted earnings of at least $23.50 per diluted share.

Tailwinds

  • Continued strong performance due to Marketplace.
  • Operating leverage.
  • Higher net investment income are expected to offset the higher-than-expected trend in Medicaid
  • Higher net investment income are expected to offset the higher-than-expected trend in Medicare
  • Premium revenue for the full year is unchanged and expected to be approximately $38 billion, an increase of approximately 17% from the full year 2023.

Headwinds

  • Higher-than-expected trend in Medicaid in the second half of the year.
  • Higher-than-expected trend in Medicare in the second half of the year.
  • Unprecedented short-term dynamics caused by redeterminations.
  • Approximately 50 basis points were due to a premium rate reduction retroactive to the beginning of 2024
  • Approximately 20 basis points were due to Medicaid “new store” plans

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 Q3 2024

Historical avgQ3 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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