Molina Healthcare reported its Q4 2024 earnings on February 5, 2025, delivering results that fell short of expectations. The company posted an adjusted earnings per share (EPS) of $5.05, missing analysts’ estimates by 14%, which anticipated an EPS of $5.88. Despite this miss, Molina experienced a year-over-year revenue growth of $1.45 billion, culminating in total revenues of $10.5 billion—a 16% increase from the previous year. 

Membership figures for Molina increased by 10.8% to approximately 5.5 million, though this number also missed consensus projections. The company's medical care ratio rose to 90.2%, indicating rising medical costs, which could pose challenges for future profitability. 

Looking ahead, Molina is optimistic, projecting a 9% increase in premium revenues for 2025 and targeting adjusted EPS of at least $24.50 over the year. However, it is essential for investors to note that the company has a Zacks Rank of #4 (Sell), indicating uncertainty surrounding its financial performance moving forward.

In context, while Molina had previously exceeded EPS expectations, leading to an 18% surge in share price in the preceding quarter, the current results may temper investor sentiment. As the market continues to navigate the complexities of healthcare costs and membership growth, investors should weigh these factors carefully in their decision-making.

Molina Healthcare Reports Q4 Earnings Miss Despite Revenue Growth, Membership Increases, and Rising Medical Costs

Molina Healthcare recently released its Q4 earnings report on February 5, 2025, disclosing an earnings per share (EPS) of $5.05, which was 14% below the anticipated $5.88. Despite this miss, the company experienced significant revenue growth, with total revenues increasing by $1.45 billion year-over-year, amounting to $10.5 billion for the quarter. The company also reported a year-over-year adjusted EPS growth of 15.3%.

Molina's membership saw a commendable rise, growing by 10.8% to approximately 5.5 million members. However, this growth fell short of analysts' expectations. A key concern highlighted in the report was the rise in the medical care ratio, which escalated to 90.2%, indicating increasing medical costs that could pressure future profitability.

Looking ahead, Molina is optimistic about its growth prospects, forecasting a 9% increase in premium revenues and setting an adjusted EPS target of at least $24.50 for 2025. Despite these positive outlooks, the company currently holds a Zacks Rank of #4 (Sell), reflecting concerns over its ability to meet earnings expectations in the near term.

In the previous quarter, Molina had exceeded EPS estimates, resulting in an 18% surge in its share price the following day. Investors should weigh these recent developments against the backdrop of rising costs and the company's current sell rating as they consider their investment strategies.

Molina Healthcare Reports Q4 Earnings Miss Despite Significant Revenue Growth and Increased Membership

Molina Healthcare Inc. is dedicated to providing quality healthcare services to individuals and families, particularly those eligible for government-sponsored programs such as Medicaid and Medicare. The company's mission focuses on delivering accessible, affordable, and high-quality healthcare solutions while improving the health of its members. Molina Healthcare Inc. employs a strategy centered on community engagement, innovative care management, and a commitment to addressing social determinants of health. Through its operations, the company aims to enhance patient outcomes and streamline healthcare delivery across the diverse populations it serves.

MOLINA HEALTHCARE INC