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Sep 30, 2020
Molina Q3 2020 Earnings Report
Reported GAAP EPS of $3.10 and adjusted EPS of $3.36.
Key Takeaways
Molina Healthcare reported a solid third quarter performance with increased premium revenue and improved medical care ratio. The company's net income increased to $185 million, and adjusted EPS reached $3.36.
Premium revenue increased by 16.8% to $4.8 billion.
Medical care ratio improved to 85.9% compared to 86.3% in the third quarter of 2019.
General and administrative expense ratio decreased to 7.3% from 7.6%.
Net income rose to $185 million, compared to $175 million in the same quarter of the previous year.
Forward Guidance
The Company has increased its full year 2020 total revenue guidance to approximately $19.6 billion. While the Company’s core performance is expected to remain strong through the fourth quarter of 2020, the Company is choosing to maintain its existing earnings guidance.
Positive Outlook
- Full year 2020 total revenue guidance increased to approximately $19.6 billion.
- Revenue reflects the Passport membership.
- Revenue reflects higher Medicaid enrollment through the third quarter of 2020.
- Core performance is expected to remain strong through the fourth quarter of 2020.
- Magellan Complete Care acquisition is on track to close around the end of the year.
Challenges Ahead
- Continued uncertainty related to COVID’s impact on medical care costs.
- Possibility for additional COVID-related rate refunds.
- Cautious approach due to uncertainty related to COVID.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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