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Dec 31, 2020
Molina Q4 2020 Earnings Report
Reported net income for the fourth quarter and year-end 2020 and introduced full year 2021 earnings guidance.
Key Takeaways
Molina Healthcare reported a net income of $34 million for Q4 2020, or $0.56 per diluted share. The company issued its full year 2021 earnings guidance, with premium revenue growth expected to be over 25% and adjusted EPS expected to be in the range of $12.50 - $13.00.
Total revenue increased 15% to $19.4 billion for the full year 2020 compared to 2019.
For the full year 2020, net income was $673 million, or $11.23 per diluted share, compared to net income of $737 million, or $11.47 per diluted share, for the full year 2019.
The Company issued its full year 2021 earnings guidance, with premium revenue growth expected to be over 25% and adjusted EPS expected to be in the range of $12.50 - $13.00.
Included in the Company’s guidance is the effect of the overhang from COVID and Medicare risk scores expected to soon abate.
Forward Guidance
The Company issued its full year 2021 earnings guidance, with premium revenue growth expected to be over 25% and adjusted EPS expected to be in the range of $12.50 - $13.00.
Positive Outlook
- Continued strong performance in Medicaid and Medicare;
- Margin recovery and growth in the Marketplace business;
- Accretion from the Magellan Complete Care businesses and the Kentucky and Passport installation; and,
- The elimination of the Health Insurer Fee.
- Included in the Company’s guidance is the effect of the overhang from COVID and Medicare risk scores expected to soon abate.
Challenges Ahead
- A negative net effect of COVID due to a continuation of many of the risk-sharing corridors that existed in 2020 and the direct costs of COVID-related patient care;
- Medicare risk scores;
- Net pharmacy benefit carve-outs.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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