2018 has marked a positive turnaround for Molina Healthcare after leadership and financial instability in 2017.
KEY TAKEAWAYS
After a topsy-turvy 2017, the insurer has performed more consistently in 2018, raising its year-end outlook.
This comes despite decreases to net income and earnings per share in Q3.
Nonetheless, CEO Joe Zubretsky is impressed with Molina’s “continued performance.”
Net income and premium revenues declined for Molina Healthcare in Q3, though the Long Beach-based insurer raised its financial guidance for the end of the year, according to its Q3 earnings report released Wednesday afternoon.
Molina’s net income totalled $197 million, down $5 million from Q2, while premium revenues dipped 4% to $177 million. Molina attributes this drop to risk adjustment premiums from last year that were not recognized in Q2 as well as $57 million in retroactive Medicaid expansion risk corridor payments in California.
The quarterly earnings mark a shift for Molina, which saw significant financial upheaval following a major reorganization effort in 2017.
C-SUITE PERSPECTIVE:
“We are very pleased with the continued improvement in the performance of our business,” Joe Zubretsky, CEO of Molina Healthcare, said in a statement. “Our financial results reflect the significant progress we are making in executing our margin recovery and sustainability plan.”
In response to its Q3 earnings report, Molina has improved its end-of-year financial guidance by $1.65 per diluted share to a range of $8.80 to $9.
ADDITIONAL MOLINA Q3 EARNINGS REPORT HIGHLIGHTS:
- In Q3 2017, Molina reported a $97 million loss in net income, further emphasizing the company’s turnaround.
- The insurer’s net income margin totalled 4.2% for Q3, including 3.6% for the year.
- Molina also repaid $140 million in outstanding debt in Q3, bringing their half-year total to $697 million.
For complete financial information, review Molina’s filing with the Securities and Exchange Commission.
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