Can Molina Healthcare Beat These Numbers?

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Molina Healthcare (NYS: MOH) is expected to report Q2 earnings on July 26. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Molina Healthcare's revenues will expand 29.6% and EPS will drop -97.4%.

The average estimate for revenue is $1.51 billion. On the bottom line, the average EPS estimate is $0.01.


Revenue details
Last quarter, Molina Healthcare reported revenue of $1.37 billion. GAAP reported sales were 23% higher than the prior-year quarter's $1.12 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.39. GAAP EPS of $0.39 for Q1 were 2.6% higher than the prior-year quarter's $0.38 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 17.7%, 70 basis points worse than the prior-year quarter. Operating margin was 2.4%, 40 basis points worse than the prior-year quarter. Net margin was 1.3%, 30 basis points worse than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $5.98 billion. The average EPS estimate is $0.81.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 131 members out of 144 rating the stock outperform, and 13 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Molina Healthcare a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Molina Healthcare is hold, with an average price target of $36.60.

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The article Can Molina Healthcare Beat These Numbers? originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio.The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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