Molina Healthcare Reports Solid Revenue Growth Amid Declining Profit Margins
Molina Healthcare (NYSE:MOH) reported impressive revenue growth in the fourth quarter of calendar year 2024, as the company's sales surged by 16% year-over-year, reaching $10.5 billion. According to Finance Yahoo, this figure exceeded Wall Street's expectations by 1.9%.
Despite the revenue success, Molina Healthcare experienced a setback in its profit margins. The company's GAAP profit per share stood at $4.44, falling short by 19% compared to analysts' consensus estimates. However, CEO Joseph Zubretsky remains optimistic, stating, "I am very pleased our 2024 revenue growth exceeded our long-term targets and we produced consolidated pre-tax margins within our long-term target range."
Founded in 1980, Molina Healthcare provides insurance primarily for those eligible for government-sponsored programs like Medicare and Medicaid. Over the last five years, the company has recorded a commendable annual sales growth rate of 19.3%, outperforming the healthcare industry average and indicating a strong market demand for its products and services. However, recent data shows a deceleration to an annualized revenue growth of 12.8% over two years, as per the data on the IndexBox platform.
As Molina Healthcare positions itself for future growth, analysts are forecasting a more modest 6.5% revenue increase over the next 12 months. With a current customer base of 5.5 million—an increase achieved at an average yearly growth of 4.3%—the company is seeing higher spending per customer on its insurance offerings.
Nevertheless, the pressing challenge for Molina continues to be its operating margins, which averaged a weak 4.2% over the past five years. The Q4 2024 operating profit margin was reported at 3.6%, aligning with the previous year's results, but signaling stability rather than growth. The company's earnings per share (EPS) grew at a 12.2% compounded annual rate over five years, yet lagged behind its revenue growth due to increased operational costs, taxes, and interest expenses.
Molina Healthcare's ability to manage its cost base and adapt to regulatory and economic changes remains critical as the healthcare industry faces potential reforms and technological shifts. Despite the shortfall in earnings, analysts anticipate a promising future, projecting a 19.4% EPS growth over the next year, potentially signalling strategic recalibrations. Following the Q4 earnings release, Molina Healthcare's stock experienced a notable dip of 9.2% to $288, reflecting investor concerns over short-term profitability.
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1. INTRODUCTION
Making Data-Driven Decisions to Grow Your Business
- REPORT DESCRIPTION
- RESEARCH METHODOLOGY AND AI PLATFORM
- DATA-DRIVEN DECISIONS FOR YOUR BUSINESS
- GLOSSARY AND SPECIFIC TERMS
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2. EXECUTIVE SUMMARY
A Quick Overview of Market Performance
- KEY FINDINGS
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3. MARKET OVERVIEW
Understanding the Current State of The Market and Its Prospects
- MARKET SIZE
- CONSUMPTION BY COUNTRY
- MARKET FORECAST TO 2030
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4. MOST PROMISING PRODUCT
Finding New Products to Diversify Your Business
This Chapter is Available Only for the Professional Edition PRO- TOP PRODUCTS TO DIVERSIFY YOUR BUSINESS
- BEST-SELLING PRODUCTS
- MOST CONSUMED PRODUCT
- MOST TRADED PRODUCT
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5. MOST PROMISING SUPPLYING COUNTRIES
Choosing the Best Countries to Establish Your Sustainable Supply Chain
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- TOP PRODUCING COUNTRIES
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6. MOST PROMISING OVERSEAS MARKETS
Choosing the Best Countries to Boost Your Exports
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- TOP CONSUMING MARKETS
- UNSATURATED MARKETS
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7. GLOBAL PRODUCTION
The Latest Trends and Insights into The Industry
- PRODUCTION VOLUME AND VALUE
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8. GLOBAL IMPORTS
The Largest Importers on The Market and How They Succeed
- IMPORTS FROM 2012–2024
- IMPORTS BY COUNTRY
- IMPORT PRICES BY COUNTRY
9. GLOBAL EXPORTS
The Largest Exporters on The Market and How They Succeed
- EXPORTS FROM 2012–2024
- EXPORTS BY COUNTRY
- EXPORT PRICES BY COUNTRY
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10. PROFILES OF MAJOR PRODUCERS
The Largest Producers on The Market and Their Profiles
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11. COUNTRY PROFILES
The Largest Markets And Their Profiles
This Chapter is Available Only for the Professional Edition PRO- United States
- China
- Japan
- Germany
- United Kingdom
- France
- Brazil
- Italy
- Russian Federation
- India
- Canada
- Australia
- Republic of Korea
- Spain
- Mexico
- Indonesia
- Netherlands
- Turkey
- Saudi Arabia
- Switzerland
- Sweden
- Nigeria
- Poland
- Belgium
- Argentina
- Norway
- Austria
- Thailand
- United Arab Emirates
- Colombia
- Denmark
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LIST OF TABLES
- Key Findings In 2024
- Market Volume, In Physical Terms, 2012–2024
- Market Value, 2012–2024
- Per Capita Consumption, By Country, 2018–2024
- Production, In Physical Terms, By Country, 2012–2024
- Imports, In Physical Terms, By Country, 2012–2024
- Imports, In Value Terms, By Country, 2012–2024
- Import Prices, By Country Of Destination, 2012–2024
- Exports, In Physical Terms, By Country, 2012–2024
- Exports, In Value Terms, By Country, 2012–2024
- Export Prices, By Country Of Origin, 2012–2024
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LIST OF FIGURES
- Market Volume, In Physical Terms, 2012–2024
- Market Value, 2012–2024
- Consumption, By Country, 2024
- Market Volume Forecast to 2030
- Market Value Forecast to 2030
- Products: Market Size And Growth, By Type
- Products: Average Per Capita Consumption, By Type
- Products: Exports And Growth, By Type
- Products: Export Prices And Growth, By Type
- Production Volume And Growth
- Exports And Growth
- Export Prices And Growth
- Market Size And Growth
- Per Capita Consumption
- Imports And Growth
- Import Prices
- Production, In Physical Terms, 2012–2024
- Production, In Value Terms, 2012–2024
- Production, By Country, 2024
- Production, In Physical Terms, By Country, 2012–2024
- Imports, In Physical Terms, 2012–2024
- Imports, In Value Terms, 2012–2024
- Imports, In Physical Terms, By Country, 2024
- Imports, In Physical Terms, By Country, 2012–2024
- Imports, In Value Terms, By Country, 2012–2024
- Import Prices, By Country, 2012–2024
- Exports, In Physical Terms, 2012–2024
- Exports, In Value Terms, 2012–2024
- Exports, In Physical Terms, By Country, 2024
- Exports, In Physical Terms, By Country, 2012–2024
- Exports, In Value Terms, By Country, 2012–2024
- Export Prices, 2012–2024