Molina Healthcare, Inc. (NYSE:MOH), a $13 billion market cap healthcare provider, announced Monday it expects lower-than-anticipated second quarter earnings and has reduced its full-year 2025 guidance due to rising medical costs across all business segments. The news has contributed to a steep 19.6% decline in the stock price over the past week, pushing it near its 52-week low.
The managed care company projects second quarter 2025 adjusted earnings of approximately $5.50 per share, below previous expectations. As a result, Molina has lowered its full-year 2025 adjusted earnings guidance to between $21.50 and $22.50 per share, reflecting a consolidated pre-tax margin of just under 4%.
"The short-term earnings pressure we are experiencing results from what we believe to be a temporary dislocation between premium rates and medical cost trend which has recently accelerated," said Joseph Zubretsky, President and Chief Executive Officer, in the press release.
The company indicated the medical cost pressures affecting its Medicaid, Medicare, and marketplace segments are expected to continue through the second half of 2025.
Molina’s preliminary second quarter GAAP net income is estimated at approximately $4.83 per share. The difference between GAAP and adjusted figures primarily stems from amortization of intangible assets and acquisition-related expenses.
The FORTUNE 500 healthcare provider plans to release complete second quarter results after market close on July 23, followed by a conference call on July 24.
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