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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 $18.6 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 first-quarter earnings for 2025 after the market closes on Wednesday, Apr. 23.
Ahead of the event, analysts expect MOH to report a profit of $5.86 per share on a diluted basis, up 2.3% from $5.73 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect MOH to report EPS of $24.43, up 7.9% from $22.65 in fiscal 2024. Its EPS is expected to rise 13.5% year over year to $27.72 in fiscal 2026.
MOH stock has underperformed the S&P 500’s ($SPX) 4.2% losses over the past 52 weeks, with shares down 13.3% during this period. Similarly, it underperformed the Health Care Select Sector SPDR Fund’s (XLV) 6.9% dip over the same time frame.
MOH’s underperformance can be linked to higher medical care costs, decreased investment income, and slower membership growth than anticipated, which negatively affected investor confidence.
On Feb. 5, MOH reported its Q4 results, and its shares closed down more than 10% in the following trading session. Its adjusted EPS of $5.05 did not meet Wall Street expectations of $5.81. The company’s revenue was $10.5 billion, meeting Wall Street forecasts. MOH expects full-year adjusted EPS to be $24.50.
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,” and one recommends a “Moderate Sell.” MOH’s average analyst price target is $341, indicating a potential upside of 3.1% from the current levels.
