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Mar 31, 2021
Molina Q1 2021 Earnings Report
Molina Healthcare's financial performance for Q1 2021 reflected substantial revenue growth and improved profitability.
Key Takeaways
Molina Healthcare reported a strong first quarter in 2021, with a 33% increase in GAAP earnings per diluted share, reaching $3.89, and a 47% increase in adjusted earnings per diluted share, amounting to $4.44. The company served approximately 4.6 million members, marking a 35% increase compared to the previous year, and premium revenue rose by 47% to $6.3 billion. Due to the strong performance, Molina increased its full year 2021 premium revenue and adjusted earnings guidance.
GAAP net income increased by 33% to $3.89 per diluted share compared to Q1 2020.
Adjusted net income rose by 47% to $4.44 per diluted share compared to Q1 2020.
Membership grew by 35%, reaching approximately 4.6 million members.
Premium revenue increased by 47% to $6.3 billion compared to Q1 2020.
Molina
Molina
Molina Revenue by Segment
Revenue by Segment
Medicaid Revenue
CapyFin.comMedicare Revenue
CapyFin.comMarketplace Revenue
CapyFin.com Forward Guidance
Molina Healthcare increased its full year 2021 premium revenue guidance to more than $24.0 billion and adjusted earnings guidance to no less than $13.00 per diluted share.
Positive Outlook
- The Public Health Emergency period and associated pause on Medicaid membership redeterminations is now expected to continue through the third quarter of 2021.
- Strong membership pickup in the Marketplace open enrollment.
- Slower membership attrition during the quarter.
- Premium revenue guidance increased to more than $24.0 billion.
- Adjusted earnings per share guidance increased to no less than $13.00.
Challenges Ahead
- Company continues to be cautious in forecasting utilization trends in the remaining nine months of the year due to COVID pandemic.
- COVID-related risk corridors.
- Direct COVID medical costs.
- Impacts were varied across lines of business due to COVID.
- Temporary industry-wide challenge of risk scores that do not fully reflect the acuity of the membership.
Revenue & Expenses
Visualization of income flow from segment revenue to net income