Molina plunges as 2026 guidance disappoints

 

• Molina Healthcare (MOH) has plummeted ~33% in after-hours trading Thursday after posting its Q4 financial results that included disappointing 2026 profit guidance.
• The Medicare and Medicaid-focused managed care company is projecting 2026 adjusted earnings of at least $5.00 per share. Consensus is $13.71. It is also projecting full-year revenue of $44.5B. Consensus is $46.79B.
• Molina said that earnings for this year are being negatively impacted by $2.50 a share due to the implementation of a new Medicaid contract and poor performance of its Medicare Advantage Part D product.
• The company said it would stop offering its Part D plan in 2027 since it "does not align with its strategic shift to focus exclusively on its $5 billion dual eligible business in Medicare." Part D brought in about $1B annually in premiums.
• In late January, the Trump administration proposed nearly flat reimbursement rates for Medicare Advantage payers in 2027.

https://www.msn.com/en-us/money/companies/molina-plunges-as-2026-guidance-disappoints/ar-AA1VLKCl