Molina Healthcare’s Quarter Beats ExpectationsMonday, April 30, 2012
Molina Healthcare Inc. said that its first quarter net income rose better than expected, largely from expansion of its Texas business.
After the markets closed on Monday, the Long Beach managed care company reported net income of $18.1 million (39 cents a share), compared with $17.4 million (38 cents) in the same period a year earlier. Revenue rose 23 percent to $1.37 billion.
Analysts surveyed by FactSet on average expected the company to report net income of 38 cents a share on revenue of $1.36 billion.
Membership in Molina’s commercial and Medicare insurance programs more than doubled to about 300,000 people, as the company won new contracts that took effect in March. In addition, revenue in California grew more than 20 percent.
The company said it still expects earnings per share of about $1.75 this year, compared with the Wall Street consensus of $1.77.
Molina fell 85 cents, or 3.2 percent, to close at $25.65 on the New York Stock Exchange prior to the earnings announcement.