BUZZ-Molina Healthcare falls on higher quarterly Medicaid costs

Reuters
02-06
BUZZ-Molina Healthcare falls on higher quarterly Medicaid costs

** Health insurer Molina Healthcare's MOH.N shares fall 8.5% to $290 premarket

** Co late on Wednesday reported higher-than-expected costs tied to its government-backed Medicaid plans in Q4

** Co's medical cost ratio, the percentage of premiums paid out for medical services, was 90.2%, higher than estimates of 88.43%, as per data compiled by LSEG

** Co expects 2025 adjusted profit of at least $24.5 per share, below analysts' estimates of $25.71 per share

** Reported Q4 adjusted profit of $5.05 per share, below Wall Street estimates of $5.72 per share

** Brokerage J.P. Morgan says Q4 earnings miss and 2025 guidance below expectations were driven by "implementation costs for recent Medicaid/Duals contract wins"

** Stock had fallen 19.5% in 2024

(Reporting by Sneha S K)

((Sneha.SK@thomsonreuters.com;))

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