Molina Healthcare Inc. beat Wall Street expectations by reporting second quarter net income of $13.2 million (47 cents a share), up from a $4.71 million loss (-17 cents) in the same period a year ago. Analysts polled by Thomson Financial had expected earnings of 35 cents per share. Revenue for the Long Beach-based managed-care company rose 20 percent to $404.3 million. Molina, which targets the Medicaid market, said revenue was boosted by new operations in Indiana and Ohio, along with enrollment gains in Utah. In addition, medical care costs as a percentage of premium revenue, known as the medical care ratio, dropped 8.2 points to 83.7 percent.
Staar Surgical Co. reported second-quarter net loss of $3.2 million (-13 cents per share), 53 percent worse than the same period a year ago when the company lost 9 cents per share. Total product sales for the Monrovia-based ophthalmic device maker rose 4.7 percent to $14.6 million, with U.S. net sales up 17 percent to $5,986,000. The maker of implantable contact lens and similar products said expenses in the quarter were up due to increased costs related to the regulatory approval process and product launches. The impact of new reporting requirements on stock option had a negative impact on earnings of $807,000, or 2 cents per share.
Health Care Property Investors, Inc. reported net income of $36.3 million (26 cents per share), down 4 percent (2 cents) from the same period a year ago. Revenue for the Long Beach real estate investment trust rose 21 percent to $140 million. The company, which specializes in medical office buildings, hospitals, skilled nursing facilities and other health-related properties, announced the acquisition of CNL Retirement Properties Inc. during the quarter, plus $352 million in individual properties.