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Long Beach, California-based Molina Healthcare, Inc. (MOH) provides managed healthcare services to low-income families and individuals under the Medicaid and Medicare programs and through the state insurance marketplaces. Valued at a market cap of $16.4 billion, it is expected to announce its fiscal Q4 earnings results after the market closes on Wednesday, Feb. 5.

Ahead of this event, analysts project the healthcare company to report a profit of $5.81 per share, up nearly 32.7% from $4.38 per share in the year-ago quarter. The company has a solid track record of consistently beating Wall Street's bottom-line estimates in the last four quarters. In Q3, MOH’s adjusted EPS of $6.01 marginally outpaced the Wall Street estimates.

For fiscal 2024, analysts expect Molina to report an EPS of $23.44, up 12.3% from $20.88 in fiscal 2023.

Shares of MOH have declined 22.6% over the past 52 weeks, significantly lagging behind both the S&P 500 Index's ($SPX) 22% rise and the Health Care Select Sector SPDR Fund’s (XLV) marginal return over the same time frame.

Shares of MOH skyrocketed 17.7% following its robust Q3 earnings release on Oct. 23. Membership growth in each of the business lines of the company led to a solid growth in premiums, which in turn contributed to MOH delivering a better-than-expected Q3 revenues of $10.3 billion and adjusted earnings of $6.01 per share. Moreover, its top line improved by a notable 20.9% year-over-year, while its bottom line climbed 19% from the year-ago quarter. However, the upside was somewhat offset by escalating medical care costs.

Wall Street analysts are moderately optimistic about Molina’s stock, with a "Moderate Buy" rating overall. Among 14 analysts covering the stock, five recommend a "Strong Buy," eight suggest “Hold,” and one indicates a “Moderate Sell.” This configuration is slightly less bullish than three months ago, with six analysts suggesting a “Strong Buy.”

The average price target for MOH is $360.29, which indicates a notable 22.4% potential upside from the current levels.

On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart

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