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Sep 30, 2024
Molina Q3 2024 Earnings Report
Reported third quarter earnings and reaffirmed full year earnings guidance.
Key Takeaways
Molina Healthcare reported a strong third quarter in 2024, with GAAP earnings per diluted share of $5.65 and adjusted earnings per diluted share of $6.01. The company reaffirmed its full year 2024 guidance, expecting premium revenue of approximately $38 billion and adjusted earnings of at least $23.50 per diluted share.
Served approximately 5.6 million members, an increase of 8% compared to the previous year.
Premium revenue was approximately $9.7 billion, an increase of 18% year-over-year.
GAAP net income was $5.65 per diluted share, an increase of 34% year-over-year.
Adjusted net income was $6.01 per diluted share, an increase of 19% year-over-year.
Molina
Molina
Forward Guidance
The company reaffirmed its full year 2024 guidance with expected premium revenue of approximately $38 billion and adjusted earnings of at least $23.50 per diluted share.
Positive Outlook
- Continued strong performance due to Marketplace.
- Operating leverage.
- Higher net investment income are expected to offset the higher-than-expected trend in Medicaid
- Higher net investment income are expected to offset the higher-than-expected trend in Medicare
- Premium revenue for the full year is unchanged and expected to be approximately $38 billion, an increase of approximately 17% from the full year 2023.
Challenges Ahead
- Higher-than-expected trend in Medicaid in the second half of the year.
- Higher-than-expected trend in Medicare in the second half of the year.
- Unprecedented short-term dynamics caused by redeterminations.
- Approximately 50 basis points were due to a premium rate reduction retroactive to the beginning of 2024
- Approximately 20 basis points were due to Medicaid “new store” plans