-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Molina Healthcare reported mixed Q1 results, with adjusted EPS of $2.35 declining 61% Y/Y but beating the $1.94 consensus estimate. Revenue of $10.8B missed consensus by ~0.8%, with premium revenues down 4% due to membership losses that reduced total membership to 5.0M from 5.8M. We believe the largest membership losses in Marketplace reflect MOH's pricing and strategic portfolio adjustments, as well as industry pressure from ACA enhanced premium tax credit expiration. MOH reaffirmed full-year 2026 guidance of approximately $42B in premium revenue and at least $5.00 in adjusted EPS. Elevated medical costs continue pressuring results, with consolidated MCR deteriorating to 91.1% from 89.2% in the prior year, though Medicaid's 92.0% ratio was viewed favorably by management relative to expectations. We anticipate more comprehensive forward guidance during the Investor Day on May 8 and Q2 results in July. We expect MOH will face headwinds from Medicaid membership reductions under the One Big Beautiful Bill Act.