NEW YORK - Molina Healthcare, Inc. (NYSE:MOH) reported third-quarter earnings that exceeded analyst expectations, driven by robust revenue growth and strong performance in its Marketplace segment. The company's stock surged 9% following the announcement.
The managed care company reported adjusted earnings per share of $6.01 for the third quarter, beating the analyst estimate of $5.95. Revenue for the quarter came in at $10.34 billion, significantly surpassing the consensus estimate of $9.92 billion and marking an 18% increase YoY.
Molina's premium revenue reached $9.7 billion in Q3, up 18% from the same period last year. The company attributed this growth to new contract wins, acquisitions, and expansion within its current footprint, partially offset by the impact of Medicaid redeterminations.
"We are pleased with our performance in the quarter and, in a challenging environment, continued to execute on the fundamentals of the business," said Joseph Zubretsky, President and CEO of Molina Healthcare.
The company's Marketplace segment performed particularly well, with a Medical Care Ratio (MCR) of 73.0%, better than expected. However, the Medicaid MCR of 90.5% was higher than long-term expectations, primarily due to redetermination-related acuity shifts and increased utilization in certain services.
Molina reaffirmed its full-year 2024 guidance, expecting premium revenue of approximately $38 billion and adjusted earnings of at least $23.50 per diluted share. This represents a 17% increase in premium revenue and approximately 13% growth in adjusted earnings compared to 2023.
As of September 30, 2024, Molina served approximately 5.6 million members, an 8% increase from the previous year. The company's strong quarterly performance and optimistic outlook have contributed to the positive market reaction, with the stock price jumping 9% following the earnings release.
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