Molina Healthcare Sees Record Growth in 2024 Earnings Report
Molina Healthcare's Fourth Quarter and Year-End 2024 Financial Results
Molina Healthcare, Inc. (NYSE: MOH) has announced its incredible financial performance for the fourth quarter and year ended December 31, 2024. The company showcased significant growth with GAAP earnings per diluted share hitting $4.44 and adjusted earnings per diluted share reaching $5.05 for the final quarter. Over the course of the entire year, the GAAP earnings per diluted share stood at $20.42, a remarkable increase from the previous year’s results.
Financial Highlights
For the year 2024, Molina achieved premium revenue of approximately $38.6 billion, indicating a substantial 19% increase compared to last year. The company credited its success to new contract wins, strategic acquisitions, and an expansion of its existing operations. These results highlight the efficacy of Molina’s business strategies and their ability to adapt to the evolving healthcare environment.
Year-End Summary
- The company served around 5.5 million members as of December 31, 2024.
- Molina’s premium revenue increased by 19% year-on-year, a testament to its effective growth strategies.
- GAAP net income grew by 9%, reaching $20.42 per diluted share.
- Moreover, the adjusted net income also saw an impressive increase of 8%, reaching $22.65 per diluted share.
- Molina generated a solid cash flow of $644 million for the year.
Earnings Guidance for 2025
Looking ahead, Molina Healthcare has provided guidance for the full year 2025, expecting premium revenue of approximately $42 billion, which represents a growth of about 9% from 2024. Furthermore, adjusted earnings per share are anticipated to be at least $24.50, which corresponds to an approximate 13% growth over 2024's adjusted figures after accounting for $1.00 per diluted share of implementation costs associated with new Medicaid and Medicare Dual contracts expected to start in 2026.
Key Operational Metrics
The Medical Care Ratio (MCR) for the year recorded was 89.1%, which reflects continued efforts to manage medical costs effectively. Additionally, Molina maintained a G&A ratio of 6.7% for 2024, indicating strong cost management principles and operational efficiency.
Cash Flow and Balance Sheet Updates
Molina Healthcare reported cash and investments totaling $445 million by the end of 2024, a decrease compared to $742 million the previous year. The company undertook significant investment activities, notably purchasing around 1.7 million shares for $500 million during the fourth quarter of 2024. It's essential to highlight that the days in claims payable stood at 48, underlining the company’s efficient claims management practices.
Outlook and Future Contracts
With the recent Medicaid and Medicare Dual contracts secured and scheduled to commence from 2026, Molina Healthcare is poised for significant opportunities. The anticipated embedded earnings from these newly awarded contracts reflect the company’s commitment to improving healthcare services while ensuring long-term sustainability.
Conclusion
Molina Healthcare’s strong finish for 2024 positions it well for the upcoming years. The company’s strategic initiatives and ability to expand its footprint in the healthcare sector will likely enable continued success and growth. Investors and stakeholders can expect to observe further advancements as Molina continues to fulfill its mission in the healthcare field.
Frequently Asked Questions
What were Molina Healthcare's earnings per share for Q4 2024?
Molina Healthcare reported GAAP earnings of $4.44 and adjusted earnings of $5.05 per diluted share for the fourth quarter of 2024.
How did Molina's premium revenue change in 2024?
The premium revenue for Molina Healthcare grew to approximately $38.6 billion, marking a 19% increase year-over-year.
What is the expected premium revenue for Molina in 2025?
Molina Healthcare anticipates about $42 billion in premium revenue for the year 2025, reflecting an expected growth of approximately 9% compared to 2024.
What is the company's Medical Care Ratio (MCR) for 2024?
The Medical Care Ratio for Molina Healthcare in 2024 was 89.1%.
How much total cash flow did Molina generate in 2024?
Molina generated operating cash flow of $644 million for the year ended December 31, 2024.
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