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Monday, May 29, 2023

Molina Slips to Loss

Shares of Molina Healthcare Inc. fell more than 5 percent on Tuesday, a day after the Medicaid managed care provider said it moved to a loss in the fourth quarter on increased expenses and a retroactive rate reduction in Washington state.

After the Monday markets closed, the Long Beach company reported a loss of $9.1 million (20 cents per share), compared with net income of $25.6 million (54 cents) in the same period a year earlier. Revenue rose 8 percent to $1.71 billion.

Analysts polled by Thomson Reuters on average expected the company to report a loss of 4 cents a share on revenue of $1.8 billion.

For the full year, net income jumped 247 percent to $44.8 million. A higher medical margin was partially offset by higher administrative expenses as the company prepared for significant membership growth from its participation in Obamacare health care exchanges in California and eight other states.

Shares on Tuesday closed down $2.03, or 5.6 percent, to $33.81 on the New York Stock Exchange.

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