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Sep 30, 2021

Molina Q3 2021 Earnings Report

Reported solid operating earnings and continued to drive growth strategy.

Key Takeaways

Molina Healthcare reported a GAAP earnings per diluted share of $2.46 and an adjusted earnings per diluted share of $2.83 for Q3 2021. The company served approximately 4.8 million members as of September 30, 2021, representing a 20% increase compared to the previous year. Premium revenue for the third quarter of 2021 was approximately $6.8 billion, a 43% increase compared to the third quarter of 2020.

GAAP net income for the third quarter of 2021 was $143 million, or $2.46 per diluted share.

Adjusted net income for the third quarter of 2021 was $164 million, or $2.83 per diluted share.

As of September 30, 2021, the Company served approximately 4.8 million members, an increase of 805,000 members, or 20%, compared to September 30, 2020.

Premium revenue was approximately $6.8 billion for the third quarter of 2021, an increase of 43% compared to the third quarter of 2020.

Total Revenue
$7.04B
Previous year: $5.02B
+40.2%
EPS
$2.83
Previous year: $3.36
-15.8%
Medicaid Membership
3.98M
Previous year: 3.6M
+10.7%
Medicare Membership
138K
Previous year: 113K
+22.1%
Marketplace Membership
719K
Previous year: 325K
+121.2%
Gross Profit
$787M
Previous year: $683M
+15.2%
Cash and Equivalents
$4.36B
Previous year: $3.2B
+36.3%
Free Cash Flow
$434M
Previous year: -$177M
-345.2%
Total Assets
$11B
Previous year: $7.88B
+40.0%

Molina

Molina

Molina Revenue by Segment

Forward Guidance

The Company expects its full year 2021 total revenue to be no less than $27.5 billion and reaffirmed its full year 2021 adjusted earnings per share guidance to be no less than $13.25 per share.

Positive Outlook

  • The continuation of the Public Health Emergency period, through mid-January, 2022 and the associated pause on Medicaid membership redeterminations.
  • Underlying outperformance.
  • An offset caused by the estimated net effect of COVID which is expected to be approximately $3.00 per share for the full year 2021.
  • Continued caution in forecasting utilization trends for the remaining three months of the year due to the COVID pandemic.
  • The impact of the Cigna Texas membership acquisition is not included in guidance. The Cigna Texas membership acquisition is expected to close in January of 2022.

Revenue & Expenses

Visualization of income flow from segment revenue to net income