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Based in Long Beach, California, Molina Healthcare, Inc. (MOH) is a leading provider of managed healthcare services under the Medicaid and Medicare programs, serving a diverse range of communities across the U.S. With a market cap of $17.16 billion, Molina is renowned for its commitment to delivering quality healthcare solutions to low-income families and individuals. The company is set to announce its fiscal Q2 earnings results after the market closes on Wednesday, Jul. 24.
Ahead of the event, analysts expect MOH to report a profit of $5.77 per share, up 2.1% from $5.65 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
Its adjusted earnings of $5.73 per share for the last reported quarter surpassed the consensus estimate by 5%. The company's performance in the last quarter was driven by strong membership growth and increased premium revenues despite higher medical care costs.
For fiscal 2024, analysts expect MOH to report EPS of $23.56, up 12.8% from $20.88 in fiscal 2023.
MOH stock is down 19% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 16.8% gains and the Health Care Select Sector SPDR Fund’s (XLV) 5.8% returns over the same time frame.
In its Q1 earnings report, revenues were $9.93 billion, exceeding forecasts. The stock gained 1.2% on the earnings release day but declined 4.1% the following day.
The consensus opinion on MOH stock is optimistic, with an overall “Moderate Buy” rating. Out of 14 analysts covering the stock, seven advise a “Strong Buy” rating, six suggest a “Hold” rating, and one recommends a “Moderate Sell.” This configuration is slightly more bullish than three months ago when the stock had six “Strong Buy” ratings.
MOH's average analyst price target is $390.62, indicating a potential upside of 33.4% from the current levels.
On the date of publication, Rashmi Kumari 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.
