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Long Beach, California-based Molina Healthcare, Inc. (MOH) provides managed healthcare services to low-income families and individuals under the Medicaid and Medicare programs and through the state insurance marketplaces. Valued at a market cap of $16.4 billion, it is expected to announce its fiscal Q4 earnings results after the market closes on Wednesday, Feb. 5.
Ahead of this event, analysts project the healthcare company to report a profit of $5.81 per share, up nearly 32.7% from $4.38 per share in the year-ago quarter. The company has a solid track record of consistently beating Wall Street's bottom-line estimates in the last four quarters. In Q3, MOH’s adjusted EPS of $6.01 marginally outpaced the Wall Street estimates.
For fiscal 2024, analysts expect Molina to report an EPS of $23.44, up 12.3% from $20.88 in fiscal 2023.
Shares of MOH have declined 22.6% over the past 52 weeks, significantly lagging behind both the S&P 500 Index's ($SPX) 22% rise and the Health Care Select Sector SPDR Fund’s (XLV) marginal return over the same time frame.
Shares of MOH skyrocketed 17.7% following its robust Q3 earnings release on Oct. 23. Membership growth in each of the business lines of the company led to a solid growth in premiums, which in turn contributed to MOH delivering a better-than-expected Q3 revenues of $10.3 billion and adjusted earnings of $6.01 per share. Moreover, its top line improved by a notable 20.9% year-over-year, while its bottom line climbed 19% from the year-ago quarter. However, the upside was somewhat offset by escalating medical care costs.
Wall Street analysts are moderately optimistic about Molina’s stock, with a "Moderate Buy" rating overall. Among 14 analysts covering the stock, five recommend a "Strong Buy," eight suggest “Hold,” and one indicates a “Moderate Sell.” This configuration is slightly less bullish than three months ago, with six analysts suggesting a “Strong Buy.”
The average price target for MOH is $360.29, which indicates a notable 22.4% potential upside from the current levels.
