Morgan Stanley Sees Strong EPS for Molina Healthcare Ahead of Company Investor Day

In a report published Tuesday, Morgan Stanley analyst Andrew Schenker reiterated an Equal-Weight rating on

. In the report, Morgan Stanley noted, “MOH reported EPS of ($0.20), which compared to our ($0.18). As expected, the quarter was negatively impacted by a retroactive rate reduction in Washington, worth ~$15M pre-tax in 4Q. Adjusted for Washington, reported MLR of 88.7% was below our 89.6% forecast, but G&A of 11.0% exceeded our 10.4% estimate. Investments ahead of reform (~$45M to $50M in 4Q) likely drove this metric higher in the quarter.” Molina Healthcare closed on Monday at $35.84.