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Mar 31, 2020
Molina Q1 2020 Earnings Report
Molina Healthcare's financial results for Q1 2020 were reported, with net income at $178 million and revenue increasing by 8.9% compared to the previous year.
Key Takeaways
Molina Healthcare reported a decrease in net income for Q1 2020, with $178 million compared to $198 million in Q1 2019. However, premium revenue increased by 8.9%. The company reaffirmed its full-year 2020 earnings guidance.
Premium revenue increased by 8.9% compared to Q1 2019, reaching $4.3 billion.
The Medical Care Ratio (MCR) increased to 86.3% compared to 85.3% in Q1 2019.
The General and Administrative (G&A) expense ratio decreased to 7.0% compared to 7.3% in Q1 2019.
Molina Healthcare reaffirmed its full-year 2020 earnings guidance range of $11.20 to $11.70 per diluted share.
Molina
Molina
Molina Revenue by Segment
Revenue by Segment
Medicaid Revenue
CapyFin.comMedicare Revenue
CapyFin.comMarketplace Revenue
CapyFin.com Forward Guidance
The Company reaffirmed its full year 2020 earnings guidance range of $11.20 to $11.70 per diluted share despite the inclusion of the impact of lower yields on investment income and incremental general and administrative expenses related to COVID-19.
Positive Outlook
- Reaffirmed full year 2020 earnings guidance range of $11.20 to $11.70 per diluted share.
- Total Revenue ~$18.3B
- MCR 86.2% - 86.4%
- G&A ~7.2%
- After-Tax Margin 3.7% - 3.8%
Challenges Ahead
- Impact of lower yields on investment income.
- Incremental general and administrative expenses related to COVID-19.
- Membership increases related to the impact of COVID-19 on unemployment are not included.
- Impact of COVID-19 on net medical cost is excluded.
- Previously announced acquisitions that have not yet closed are not included.
Revenue & Expenses
Visualization of income flow from segment revenue to net income