Molina Healthcare, Inc. (NYSE: MOH) plunged over 10% in after-hours trading on Wednesday, February 5, 2025, after the company reported mixed financial results for the fourth quarter and full year 2024 and issued disappointing earnings guidance for 2025.

For the fourth quarter of 2024, Molina Healthcare reported revenue of $10.499 billion, beating consensus estimates of $10.32 billion. However, the company's adjusted earnings per share (EPS) of $5.05 fell short of analysts' expectations of $5.88.

On an annual basis, Molina Healthcare's revenue for 2024 reached $40.65 billion, exceeding expectations. The company's adjusted EPS for the full year was $22.65, surpassing analysts' forecasts.

Despite the strong performance in 2024, Molina Healthcare's guidance for fiscal year 2025 disappointed investors. The company projected revenue of approximately $44 billion, above the consensus estimate of $43.4 billion. However, its adjusted EPS guidance of at least $24.50 fell short of analysts' expectations of $26.07.

In the earnings release, Molina Healthcare cited approximately $1.00 per diluted share of expected implementation costs in 2025 for recent Medicaid and Medicare Duals contract wins as a factor contributing to the lower-than-anticipated EPS guidance.

While the company's revenue growth and long-term prospects appear promising, with Molina Healthcare highlighting its ability to achieve long-term financial targets, the market reacted negatively to the earnings guidance miss, leading to the significant after-hours sell-off.