Molina Healthcare Stung By Membership Decline, Stocks Sinks 12%
Molina Healthcare Inc. (NYSE: MOH ) shares fell Thursday after the health insurer reported lower second-quarter premium revenue despite topping Wall Street estimates for earnings and revenue. Earnings Beat As Premium Revenue Declines Adjusted earnings were $1.51 per share, down 72.4% from $5.48 a year earlier but above the analyst consensus estimate of $1.39. Revenue fell 4.8% year over year to $10.87 billion, topping expectations of $10.79 billion, according to Pro. Premium revenue declined 6% year over year to approximately $10.2 billion, reflecting lower membership that was partially offset by rate updates. Net income fell sharply to $60 million, or $1.19 per share, from $255 million, or $4.75 per share, a year earlier, as lower premium revenue and a higher medical care ratio weighed on profitability. Membership Falls Across Key Segments Total membership declined to 4.926 million i...
Molina Healthcare Inc. (NYSE: MOH ) shares fell Thursday after the health insurer reported lower second-quarter premium revenue despite topping Wall Street estimates for earnings and revenue. 39. 79 billion, according to Pro.
2 billion, reflecting lower membership that was partially offset by rate updates. 75 per share, a year earlier, as lower premium revenue and a higher medical care ratio weighed on profitability. 746 million a year earlier. 774 million a year earlier.
4% a year earlier, an increase of 180 basis points. 7%, in line with the company’s expectations, supported by rate updates and stable medical cost trends. 7%, better than expected, reflecting lower medical costs and pricing changes implemented for 2026. 9%, exceeding the company’s expectations due to prior-year risk adjustment and program integrity initiatives, as well as an unfavorable member acuity mix in the current year.
Read Also: Obamacare Premiums Could Jump 14% in 2027 As Insurers Warn Rising Medical Costs are Driving Rates Higher Guidance Raised Molina reaffirmed its fiscal 2026 premium revenue guidance of approximately $42 billion. 90 previously. 60. 15.
The higher earnings outlook reflects stronger first-half Medicaid performance. 50 per-share reduction related to its Marketplace business. 75 per share. 00 per-share loss tied to the company’s traditional Medicare Advantage Prescription Drug plan, which it previously announced it will exit in 2027.
Following Molina’s update, shares of Centene Corp. (NYSE: CNC ) also traded lower. In June, Centene said it would offer voluntary buyouts to most employees as it seeks to reduce costs after a significant decline in health plan membership. 60 at the time of publication on Thursday, according to Pro data.
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