Molina Healthcare Inc. (NYSE:MOH) missed Wall Street expectations in its second-quarter earnings report Wednesday, triggering a selloff across the healthcare insurance sector.
What Happened: On Wednesday after close, Molina reported second-quarter adjusted earnings of $5.48 per share, missing the consensus of $6.21 and the preliminary expectation of approximately $5.50 per share.
The insurance company reported sales of $11.43 billion, beating the consensus of $10.93 billion.
Molina’s second quarter results reflect a “challenging medical cost trend environment," said Joseph Zubretsky, President and Chief Executive Officer. "The current earnings pressure we are experiencing results from what we believe to be a temporary dislocation between premium rates and medical cost trend which has recently accelerated.”
Molina is still performing near its long-term target ranges, and the long-term outlook remains the same, he added.
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On Wednesday, Molina further revised its 2025 earnings guidance from $21.50-$22.50 to over $19 per share.
Notably, Centene withdrew its 2025 GAAP and adjusted diluted EPS guidance. This stems from its initial review of 2025 industry data from Wakely, an independent actuarial firm.
Molina Healthcare forecasts fiscal 2025 sales of $44 billion compared to the consensus of $44.19 billion.
It forecasts a 2025 consolidated MCR of 90.2%, with Medicaid MCR of 90.9%, Medicare MCR of 90% and Marketplace MCR of 85.1%.
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