Molina Healthcare Q3 premium revenue declines on lower Medicaid, Marketplace membership

Overview

• US managed healthcare firm's Q3 premium revenue fell 4% yr/yr on lower Medicaid and Marketplace membership

• Adjusted EPS for Q3 beat analyst expectations

• Company reaffirmed full-year 2026 premium revenue and adjusted EPS guidance

Outlook

• Molina reaffirms 2026 premium revenue guidance at about $42 bln

• Company expects 2026 adj EPS of at least $5.25, GAAP EPS of at least $2.38

• 2026 earnings guidance includes $1.50/share loss from Florida Medicaid contract and $1.00/share loss from MAPD product

Result Drivers

• MEMBERSHIP DECLINE - Co said lower Medicaid and Marketplace membership drove decrease in premium revenue

• HIGHER MEDICAL COST RATIO - Co attributed lower net income to higher consolidated medical care ratio

• RATE UPDATES AND COST TRENDS - Co said Medicaid MCR reflected rate updates and stable medical cost trend

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 16 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the managed healthcare peer group is "buy."

• Wall Street's median 12-month price target for Molina Healthcare Inc is $209.00, about 4.9% below its October 20 closing price of $219.72

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 32 three months ago

Reuters Recommended Reads

• Oct 21 - Elevance Health Q3 adjusted EPS beats estimates, raises outlook

• Oct 20 - Synchrony Financial's Q3 net earnings fall 17%

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)