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Molina Healthcare Inc. MOH reported first-quarter 2025 adjusted earnings per share (EPS) of $6.08, which beat the Zacks Consensus Estimate of $5.86. Also, the bottom line grew 6.1% from the year-ago period. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Total revenues amounted to $11.15 billion, which improved 12.2% year over year. The top line also marginally beat the consensus mark.
The strong first-quarter results benefited from rising premiums and rate hikes but were partially offset by medical care costs.
Molina Healthcare, Inc Price, Consensus and EPS Surprise
Molina Healthcare, Inc price-consensus-eps-surprise-chart | Molina Healthcare, Inc Quote
MOH’s Q1 Operational Update
Premium revenues of $10.63 billion increased 11.8% year over year in the quarter under review and beat the Zacks Consensus Estimate of $10.61 billion. The improvement stemmed from contract wins, buyouts, rate hikes and an expanding nationwide footprint, partly offset by Medicaid redeterminations.
As of March 31, 2025, total membership improved 0.4% year over year to around 5.8 million but missed the Zacks Consensus Estimate by 3.3%. The health insurer witnessed year-over-year increases in customers within its Medicare and Marketplace businesses.
Investment income remained the same year over year at $108 million but beat the consensus mark of $102.1 million.
Total operating expenses of $10.7 billion increased 12.7% year over year and were marginally higher than our model estimate of $10.6 billion due to a rise in medical care costs coupled with higher general and administrative expenses. The adjusted general and administrative expense ratio decreased to 6.8% in the first quarter from 7.1% a year ago. Interest expenses of $43 million rose from $27 million in the prior year.
The consolidated medical care ratio (medical costs as a percentage of premium revenues), or MCR, was 89.2% in the quarter under review. The metric rose from 88.5% a year ago and was higher than the consensus mark of 88.5%. Also, the figure was higher than our estimate of 88.4%.
Molina Healthcare’s adjusted net income decreased 0.3% year over year to $333 million.
MOH’s Financial Update (as of March 31, 2025)
Molina Healthcare exited the first quarter with cash and cash equivalents of $4.9 billion, which jumped from the 2024-end level of $4.7 billion. Total assets of $16.4 billion rose from $15.6 billion at 2024-end.
Long-term debt of $3.6 billion rose from $2.9 billion at 2024-end.
Total stockholders’ equity of $4.3 billion decreased from the $4.5 billion figure at 2024-end.
Net cash provided by operating activities amounted to $190 million in the first quarter of 2025 compared with $214 million in the prior year.