Molina Healthcare Inc. reported meager earnings after markets closed Wednesday, falling well short of Wall Street expectations on profits.
The Long Beach company posted net income of $7.8 million (16 cents a share) for the quarter ended June 30, a drop of nearly 70 percent from the same quarter a year ago. Analysts had expected earnings of 39 cents a share. The company’s revenue of $2.3 billion for the quarter was in line with analysts’ estimates.
In its announcement, Molina blamed the poor performance in part on delays in getting reimbursements related to the federal Affordable Care Act. Those reimbursements alone would have boosted earnings by 14 cents a share.
Despite the weak quarter, the company reiterated its earnings guidance for the year, saying it expects the reimbursement issues to be resolved by year’s end.
Shares of Molina closed Wednesday at $43.19 on the NYSE, but fell 4 percent to $41.67 in after-hours trading following the earnings announcement.