Molina Healthcare Beats Up on Analysts Yet Again

Molina Healthcare (NYSE: MOH  ) reported earnings on April 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Molina Healthcare met expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share expanded significantly.

Margins grew across the board.

Revenue details
Molina Healthcare reported revenue of $1.59 billion. The 11 analysts polled by S&P Capital IQ wanted to see revenue of $1.59 billion on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $1.37 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.64. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.25 per share. GAAP EPS of $0.64 for Q1 were 64% higher than the prior-year quarter's $0.39 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 19.0%, 130 basis points better than the prior-year quarter. Operating margin was 4.2%, 180 basis points better than the prior-year quarter. Net margin was 1.9%, 60 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $1.62 billion. On the bottom line, the average EPS estimate is $0.32.

Next year's average estimate for revenue is $6.90 billion. The average EPS estimate is $1.55.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 126 members out of 138 rating the stock outperform, and 12 members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give Molina Healthcare a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Molina Healthcare is hold, with an average price target of $35.82.

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