Q3 Earnings Preview for Molina Healthcare (NYSE:MOH)

in EARNINGS/INVESTING IDEAS by

Molina Healthcare, Inc. (NYSE:MOH) is scheduled to report Q3 earnings results after markets close for trading on October 28, 2020.

The company is expected to report earnings of $2.18/share on revenue of $4.821 billion. The consensus earnings per share (EPS) of $2.18/share is based on a poll of 12 analysts and represents a decline in eps of −22.2% over the same quarter last year, when the company reported earnings of $2.80/share.

The revenue forecast of $4.821 billion based on a poll of 10 analysts implies a year-over-year (YoY) growth in revenue of 13.6%. Last year the company reported $4.243 billion in revenue for the quarter.

Expected to report EPS contraction of −22.2% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $4,821.22 $4,243.00 13.6%
EPS $2.18 $2.80 −22.2%

Earnings Call Trends

Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters, and missed expectations 1 quarter.

What are your expectations from Molina Healthcare, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $4.95 $4.79 −3.2% Missed
Q1, 2020 $3 $3.02 0.5% Beat
Q4, 2019 $2.65 $2.73 3.2% Beat
Q3, 2019 $2.73 $2.80 2.7% Beat
Q2, 2019 $2.70 $3.11 15.4% Beat
Q1, 2019 $2.45 $3.04 23.9% Beat
Q4, 2018 $1.54 $3.07 99.7% Beat
Q3, 2018 $1.65 $2.97 79.7% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by falling −1.6%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 30, 2020 $187.65 $184.70 −1.6% Decline
April 30, 2020 $164.76 $173.25 5.2% Increase
February 10, 2020 $128 $141.42 10.5% Increase
October 29, 2019 $124.27 $123.88 −0.3% Decline

Fundamentals And Technical Analysis

Molina Healthcare, Inc. is currently trading at $205.03/share, down −3.5% for the day. The company is trading at approximately 95.1% of its 52-week high of $215.62/share. The company’s stock price is up 11.0% since the last earnings report and down −0.8% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 58.83 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:MOH Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 15.26 and a forward P/E multiple of 17.71.

Molina Healthcare, Inc.’s current share price also implies a price-to-book (P/B) multiple of 6.09. The following table summarizes some other key fundamental ratios:

Data as of October 27, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $205.03
P/E Ratio 15.3x
P/E Ratio (Fwd) 17.7x
PEG Ratio 2.0
Total Debt / Total Capital 13.9%
Levered Free Cash Flow $938 million
EV / EBITDA 8.7x

Finbox

Molina Healthcare, Inc. is a large-cap stock with a market capitalization of $12.158 billion and a total enterprise value of $10.896 billion. The company operates in the Healthcare sector and the Healthcare Providers & Services industry.

Molina Healthcare, Inc. provides managed health care services to low-income families and individuals under the Medicaid and Medicare programs and through the state insurance marketplaces. The company operates in two segments, Health Plans and Other. As of December 31, 2019, it served approximately 3.3 million members in 14 states and the Commonwealth of Puerto Rico, who are eligible for Medicaid, Medicare, and other government-sponsored health care programs. The company offers its health care services for its members through contracts with a network of providers, including independent physicians and physician groups, hospitals, ancillary providers, and pharmacies. Molina Healthcare, Inc. was founded in 1980 and is headquartered in Long Beach, California.

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