Molina Healthcare (MOH) - Bear of the Day

Molina Healthcare, Inc. (MOH) reported a fourth-quarter loss of $0.18 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.16. The company earned $1.19 per share in 2009 as against $2.15 per share in 2008, so its latest results are down approximately 45%.

Molina's profit fell approximately 48.2% to $30.9 million in fiscal 2009 from 2008. The decline in profit was attributable to higher operating expenses. The increase in medical costs was attributable to the H1N1 influenza and costs associated with recently enrolled members.

We are also concerned about the intense competition facing Molina. We have an Underperform rating on the stock.Zacks Investment Research