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Dec 31, 2019
Molina Q4 2019 Earnings Report
Molina Healthcare's Q4 2019 financial performance was reported, featuring a net income of $168 million. The company also introduced full year 2020 earnings guidance.
Key Takeaways
Molina Healthcare reported a net income of $168 million for Q4 2019, compared to $201 million in Q4 2018. Premium revenue decreased by 7.1% to $4.1 billion. The company introduced full year 2020 earnings guidance, including GAAP earnings per diluted share of $11.20 - $11.70.
Premium revenue decreased by 7.1% to $4.1 billion compared to Q4 2018.
The medical care ratio (MCR) increased to 86.0% compared to 85.1% in Q4 2018.
The general and administrative (G&A) expense ratio increased to 8.0% compared to 7.2% in Q4 2018.
After-tax margin was 3.9% compared to 4.3% in Q4 2018.
Molina
Molina
Molina Revenue by Segment
Revenue by Segment
Medicaid Revenue
CapyFin.comMedicare Revenue
CapyFin.comMarketplace Revenue
CapyFin.com Forward Guidance
The Company issued its full year 2020 earnings guidance, including GAAP earnings per diluted share of $11.20 - $11.70 and premium revenue growth of 7.4%.
Positive Outlook
- Medicaid after-tax margins are expected to perform well benefiting from stable rate and cost trend environments.
- Medicare after-tax margins are expected to be strong despite the impact of the Health Insurer Fee.
- Marketplace after-tax margins are expected to be lower reflecting pricing actions taken for the year.
- The reintroduction of the Health Insurer Fee in 2020 with an impact of approximately $0.30 per diluted share.
- Steady state in Texas for the full year 2020.
Challenges Ahead
- The YourCare Health Plan and NextLevel Health Partners acquisitions are not included in guidance as the transactions have not closed.
- Together they have over $500 million in annualized premium revenue.
- MCR 86.2% - 86.4%
- G&A Ratio ~7.2%
- Effective Tax Rate 30.8% - 31.1%
Revenue & Expenses
Visualization of income flow from segment revenue to net income