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Jun 30, 2021

Molina Q2 2021 Earnings Report

Molina Healthcare's financial performance was solid, marked by substantial revenue growth and strategic business integrations.

Key Takeaways

Molina Healthcare reported a GAAP EPS of $3.16 and an adjusted EPS of $3.40 for Q2 2021. The company served approximately 4.7 million members, an increase of 32% year-over-year. Premium revenue increased by 51% compared to the second quarter of 2020.

GAAP net income for the second quarter of 2021 was $185 million, or $3.16 per diluted share.

Adjusted net income for the second quarter of 2021 was $199 million, or $3.40 per diluted share.

The Company served approximately 4.7 million members, an increase of 1.1 million members, or 32%, compared to June 30, 2020.

Premium revenue was approximately $6.6 billion for the second quarter of 2021, an increase of 51% compared to the second quarter of 2020.

Total Revenue
$6.8B
Previous year: $4.62B
+47.2%
EPS
$3.4
Previous year: $4.79
-29.0%
Medicaid Membership
3.93M
Previous year: 3.12M
+25.8%
Medicare Membership
130K
Previous year: 108K
+20.4%
Marketplace Membership
638K
Previous year: 325K
+96.3%
Gross Profit
$796M
Previous year: $792M
+0.5%
Cash and Equivalents
$4.61B
Previous year: $3.3B
+39.5%
Free Cash Flow
$480M
Previous year: $582M
-17.5%
Total Assets
$10.5B
Previous year: $7.88B
+33.7%

Molina

Molina

Forward Guidance

The Company now expects its full year 2021 total revenue to be more than $26.0 billion and adjusted earnings per share to be no less than $13.25 per share.

Positive Outlook

  • Updated assumptions for the Public Health Emergency period, and the associated pause on Medicaid membership redeterminations, which is now expected to continue through the fourth quarter of 2021
  • Retention of pharmacy related premium in California, New York, and Kentucky
  • Underlying outperformance
  • Offset by an increase in the estimated net effect of COVID by $1.00 per share which is now expected to be approximately $2.50 per share for the full year
  • Continued caution in forecasting utilization trends in the remaining six months of the year due to the COVID pandemic