Molina Healthcare Set to Announce Fiscal Q4 Earnings with Promising Projections
Long Beach, California’s Molina Healthcare, Inc. (MOH) specializes in managed healthcare services for low-income individuals and families, operating through Medicaid, Medicare programs, and state insurance markets. The company’s current market capitalization stands at $16.4 billion, and it is anticipated to release its fiscal Q4 earnings results after the market closes on Wednesday, February 5.
Profit Expectations on the Rise
Analysts forecast that Molina will report a profit of $5.81 per share for Q4, representing an increase of nearly 32.7% from $4.38 a share in the same quarter last year. Historically, the company has a strong performance record, consistently exceeding Wall Street’s expectations in the past four quarters. In Q3, Molina delivered an adjusted EPS of $6.01, slightly surpassing forecasts.
Future Earnings Predictions
Looking ahead to fiscal 2024, analysts predict Molina’s earnings per share will reach $23.44, marking a 12.3% increase from $20.88 in fiscal 2023.
Stock Performance Compared to the Market
Over the past year, MOH shares fell 22.6%, underperforming both the S&P 500 Index, which rose by 22%, and the Health Care Select Sector SPDR Fund (XLV), which saw minor gains during the same period.
Recent Growth and Market Reactions
Following a strong performance in Q3, where it achieved $10.3 billion in revenues and an adjusted EPS of $6.01, shares of MOH surged 17.7% after the earnings announcement on October 23. Membership expansion across Molina’s business lines contributed to significant premium growth, resulting in a 20.9% year-over-year revenue increase and a 19% rise in net earnings. However, rising medical care costs tempered some of that success.
Wall Street Ratings and Price Targets
Current sentiment among Wall Street analysts leans toward moderate optimism for Molina stock, reflected in a “Moderate Buy” rating. Of the 14 analysts covering the stock, five advise a “Strong Buy,” eight suggest a “Hold,” and one recommends a “Moderate Sell.” This outlook is slightly less enthusiastic compared to three months ago, when six analysts rated it as a “Strong Buy.”
The average price target for MOH is set at $360.29, signaling a potential upside of 22.4% based on present valuations.
On the date of publication,
Neharika Jain
did not hold positions in any of the securities mentioned. All information and data are for informational purposes only. For further details, please see the Barchart Disclosure Policy
here.
The views expressed here are the opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
