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Dec 31, 2024

Molina Q4 2024 Earnings Report

Expected Revenue:$10.3B
+23.3% YoY
Expected EPS:$5.74
+32.0% YoY

Key Takeaways

Molina Healthcare reported strong Q4 2024 financial results, with premium revenue exceeding long-term targets and consolidated pre-tax margins within the target range. The company issued full year 2025 earnings guidance with expected premium revenue of approximately $42 billion and adjusted earnings of at least $24.50 per diluted share.

Q4 2024 GAAP earnings per diluted share were $4.44, and adjusted earnings per diluted share were $5.05.

Full year 2024 GAAP earnings per diluted share were $20.42, and adjusted earnings per diluted share were $22.65.

The company served approximately 5.5 million members as of December 31, 2024.

Full year 2025 earnings guidance includes expected premium revenue of approximately $42 billion and adjusted earnings of at least $24.50 per diluted share.

Total Revenue
$10.5B
Previous year: $9.05B
+16.0%
Medicaid Membership
4.89M
Previous year: 4.54M
+7.7%
Medicare Membership
242K
Previous year: 172K
+40.7%
Marketplace Membership
403K
Previous year: 281K
+43.4%
Cash and Equivalents
$4.66B
Previous year: $4.85B
-3.8%
Free Cash Flow
-$235M
Previous year: -$685M
-65.7%
Total Assets
$15.6B
Previous year: $14.9B
+5.0%

Molina

Molina

Molina Revenue by Segment

Forward Guidance

Molina Healthcare expects premium revenue of approximately $42 billion and adjusted earnings of at least $24.50 per diluted share for the full year 2025.

Positive Outlook

  • Expected premium revenue of approximately $42 billion for the full year 2025, an increase of approximately 9% from the full year 2024.
  • Full year GAAP earnings per share in 2025 expected to be at least $22.50 per share.
  • Full year adjusted earnings per share in 2025 expected to be at least $24.50 per share, representing 8% growth over the full year 2024.
  • Growth primarily reflects growth in the Company’s legacy footprint and continued realization of new store embedded earnings.
  • Includes approximately $1.00 per diluted share of expected implementation costs in 2025 for recent Medicaid and Medicare Duals contract wins, and yields approximately 13% growth over 2024.

Challenges Ahead

  • Approximately $1.00 per diluted share of expected implementation costs in 2025 for recent Medicaid and Medicare Duals contract wins.
  • GAAP G&A Ratio of 7.2%.
  • Adjusted G&A Ratio of 7.0%.
  • Effective Tax Rate of 25.3%.
  • GAAP After-tax Margin 2.8%.