Molina Q1 2021 Earnings Report
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.
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Molina Revenue by Segment
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