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Molina Healthcare, Inc. (MOH), headquartered in Long Beach, California, provides managed healthcare services to low-income families and individuals under the Medicaid and Medicare programs and through the state insurance marketplaces. Valued at $19.4 billion by market cap, the company offers health plans in California, Washington, Utah, and Michigan, as well as primary care clinics located in Northern and Southern California. The leading provider of managed healthcare services is expected to announce its fiscal third-quarter earnings for 2024 after the market closes on Wednesday, Oct. 23.
Ahead of the event, analysts expect MOH to report a profit of $6.02 per share on a diluted basis, up 19.2% from $5.05 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. Driven by new contract wins, strategic acquisitions, and expanded existing operations, MOH’s premium revenue surged in the prior quarter.
For the full year, analysts expect MOH to report EPS of $23.50, up 12.6% from $20.88 in fiscal 2023. Its EPS is expected to rise 12.9% year over year to $26.53 in fiscal 2025.
MOH stock has underperformed the S&P 500’s ($SPX) 34.8% gains over the past 52 weeks, with shares up 2.9% during this period. Similarly, it underperformed the Health Care Select Sector SPDR Fund’s (XLV) 18.9% gains over the same time frame.
On Jul. 24, MOH shares closed up marginally after reporting its Q2 results. Its adjusted EPS of $5.86 exceeded Wall Street expectations of $5.73. The company’s revenue was $9.9 billion, exceeding Wall Street forecasts of $9.8 billion. MOH expects full-year adjusted EPS to be $23.50.
Analysts’ consensus opinion on MOH stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 14 analysts covering the stock, six advise a “Strong Buy” rating, seven give a “Hold” rating, and one recommends a “Moderate Sell.” MOH’s average analyst price target is $372.36, indicating a potential upside of 12.4% from the current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
