On Mar 31, shares of Molina Healthcare, Inc. MOH scaled a new 52-week high of $67.58 on strong fourth-quarter 2014 earnings and a positive outlook for 2015.
Molina Healthcare’s one-year return of 79.5% was significantly higher than the S&P 500’s return of 11.3%. The return was also much above that of the other industry players like WellCare Health Plans, Inc. WCG, Triple-S Management Corporation GTS and Magellan Health, Inc. MGLN, which recorded returns of 43.8%, 26.5% and 21.3%, respectively.
Molina Healthcare reported impressive fourth-quarter earnings in the second week of Feb 2015. The stellar performance was primarily attributable to increased enrollment and higher premium revenues.
The company remains adept in capitalizing on market opportunities and is taking up initiatives to enhance its membership base. Moreover, the company now has an opportunity to increase enrollments further owing to the contract with Puerto Rico Health Insurance Administration to operate the Commonwealth’s Medicaid-funded Government Health Plan (“GHP”) program. Additionally, the company is gaining considerable success in lessening the amount of revenues spent on administrative costs. These have been aiding margin expansion.
Molina Healthcare’s financial position was also strong at the end of 2014, which should help the company undertake growth initiatives going forward.
Moreover, management is optimistic about the company’s performance in 2015. Banking on the solid performance in 2014, Molina Healthcare expects to generate rapid membership growth in 2015. As a result, the company has guided revenues and net income for 2015 at levels higher than their respective numbers in 2014.
Molina Healthcare currently carries a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment