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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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