Latest news with #JosephZubretsky
Axios
11-07-2025
- Business
- Axios
Why it's a rough time to be a health insurer
Rising health costs and expected fallout from President Trump's tax-and-spending law are casting a pall over major health insurers, who've been issuing a steady drip of grim financial forecasts over the past month. Why it matters: Higher drug costs and increased demand for services including mental health care is squeezing health plans while the new law is expected to shrink the insured population, potentially leaving more sick people in the risk pool. Driving the news: Molina Health — which draws the majority of its business from government programs like Medicaid and Affordable Care Act marketplaces — lowered its financial outlook this week, with CEO Joseph Zubretsky blaming "a temporary dislocation" between premiums collected and costs paid that he said had recently accelerated. Centene the previous week withdrew its 2025 guidance, pointing to sicker-than-expected patients on its ACA marketplace plans. Insurer share prices have been depressed all month, including bellwether UnitedHealthcare, CVS Health, Oscar and Molina. Between the lines: UnitedHealth signaled tough times ahead back in April, when it revised its forecast and cited "heightened care activity" in its private Medicare plans. The company also saw its share price slide following CEO Andrew Witty's abrupt departure. It's the continuation of a trend that's seen increased demand for care shrink companies' profit margins in recent years. The companies haven't been able to offset added costs through premium increases and scrutiny of pharmacy benefit managers, Moody's noted early this year, when it changed its outlook for the sector from stable to negative. The insurers also facing higher costs associated with an aging population, as well as increases in the use of pricey specialty drugs and GLP-1s. UnitedHealth is also facing increased scrutiny from federal investigators over its Medicare Advantage billing practices, the Wall Street Journal reported. Zoom in: After years of leaning into their government business such as Medicaid and Medicare Advantage, insurers are seeing the downside with federal pullbacks. That's expected to get worse with the GOP law that's projected to slash more than $1 trillion from Medicaid, put new restrictions on ACA enrollment and cause the loss of coverage for up to 12 million. And Congress could deliver another blow, if lawmakers decide not to extend enhanced ACA tax credits by the end of the year. What they're saying:"It's a crazy time for payers, and it's going to stay that way," said Sarah James, an analyst with Cantor Fitzgerald, to the Wall Street Journal. The trade group AHIP has warned the combined effects of the new law could bring "the biggest rollback in health care coverage in the country's history" while destabilizing state Medicaid programs and creating an individual market that has less choice and higher premiums.
Yahoo
10-07-2025
- Business
- Yahoo
Molina Healthcare (MOH) Announces Preliminary Results For Q2 2025
Molina Healthcare, Inc. (NYSE:MOH) is one of the On July 7, Molina Healthcare, Inc. (NYSE:MOH) announced its preliminary financial results for the fiscal second quarter of 2025 along with an update to its full-year EPS guidance. As per the latest update, Molina Healthcare, Inc. (NYSE:MOH) expects second quarter earnings around $5.50 per share, reflecting a modest decline from the previous expectation. The decline is due to the medical cost pressure across all three lines of business. Management noted that this pressure is expected to stay for the rest of the year. A doctor in scrubs shaking hands with a patient, representing the healthcare services provided to individuals and families. As a result, the company also adjusted its full-year 2025 earnings outlook. Molina Healthcare, Inc. (NYSE:MOH) now expects to earn between $21.50 and $22.50 per share for the year. This range is at the low end of its long-term targets. The company's CEO, Joseph Zubretsky, explained the situation, noting the short-term drop in earnings was due to a gap between how fast medical costs are rising and how quickly premium rates are adjusted. He called this a temporary issue and noted that the company's long-term outlook is unchanged, even with possible effects from new budget laws. Molina Healthcare, Inc. (NYSE:MOH) is a managed care company that provides health insurance and healthcare services mainly through government programs like Medicaid and Medicare. While we acknowledge the potential of MOH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-07-2025
- Business
- Yahoo
Healthcare Hit Again: Molina Cuts Guidance, Echoing Centene and UNH
Molina Healthcare, Inc. MOH became the latest health insurer to slash guidance and sound the alarm over rising medical costs and unpredictable utilization trends. It has lowered its full-year 2025 earnings guidance by 10.2% at mid-point, just days after Centene Corporation CNC shocked the managed care industry by withdrawing its financial outlook. The announcement, which comes two weeks ahead of Molina's scheduled second-quarter earnings release, underscores the growing strain across the sector. The company cited elevated medical costs across all of its business lines as the key reason behind the downward revision. Molina is the latest in a string of health insurers grappling with unexpected cost pressures. UnitedHealth Group Incorporated UNH had already withdrawn its 2025 earnings guidance back in May. Centene followed UnitedHealth, citing persistently higher medical costs and unforeseen enrollment shifts. Molina's pre-announcement further highlights the ripple effect spreading through the managed care space; each time one major insurer issues a warning, its peers have faced market fallout as well. For the second quarter of 2025, Molina now expects adjusted earnings of around $5.50 per share. That's well below the Zacks Consensus Estimate of $6.12 per share and reflects a 6.1% decline compared to the same period last year. Looking at the full year, the company now expects adjusted earnings per share to range between $21.50 and $22.50. This marks a sharp reduction from its prior forecast of at least $24.50 and falls below last year's figure of $22.65. It also lags behind the Zacks Consensus Estimate, which was pegged at $24.44. On the revenue front, the Zacks Consensus Estimate for Molina's 2025 top line stood at $44.1 billion, which indicates an 8.4% increase from the prior year, a sign that demand remains robust even amid cost headwinds. Image Source: Zacks Investment Research Despite the near-term turbulence, Molina emphasized that its long-term strategic outlook remains unchanged. President and Chief Executive Officer Joseph Zubretsky reaffirmed the company's confidence in its broader positioning, adding that even amid current challenges, the fundamentals of the business remain strong. Zubretsky hinted that the budget bill signed by President Donald Trump will not derail the company from its long-term trajectory. Shares of Molina have declined 31.6% over the past three months while the industry fell 38.9%. UnitedHealth and Centene saw even steeper losses, with shares tumbling 47.5% and 47.3%, respectively, during the same period. Meanwhile, the S&P 500 Index gained 15.1%, buoyed by strength in the tech-related sector. Image Source: Zacks Investment Research From a valuation standpoint, Molina trades at a forward price-to-earnings ratio of 8.85, down from the industry average of 11.66. MOH currently carries a Value Score of A. Image Source: Zacks Investment Research The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 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 UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Molina Healthcare, Inc (MOH) : Free Stock Analysis Report Centene Corporation (CNC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
07-07-2025
- Business
- Associated Press
Molina Healthcare Announces Preliminary Second Quarter Financial Results and Updates Fiscal Year 2025 Earnings Per Share Guidance
LONG BEACH, Calif.--(BUSINESS WIRE)--Jul 7, 2025-- Molina Healthcare, Inc. (NYSE: MOH) today announced preliminary financial results for the second quarter of 2025 and updated its full year 2025 adjusted earnings per share guidance. The Company's announcement of preliminary results was driven by recent market dynamics and off-cycle disclosures from others in the managed health care sector. The Company now expects its second quarter 2025 adjusted earnings to be approximately $5.50 per share (1), which is modestly below its prior expectations. This preliminary result reflects medical cost pressures in all three lines of business. The Company expects these medical cost pressures to continue into the second half of the year. As a result, the Company now expects its full year 2025 adjusted earnings to be in the range of $21.50 to $22.50 per share (1), reflecting a consolidated pre-tax margin of just under 4%, the low-end of its long-term guidance range. 'The short-term earnings pressure we are experiencing results from what we believe to be a temporary dislocation between premium rates and medical cost trend which has recently accelerated,' said Joseph Zubretsky, President and Chief Executive Officer. 'As we are still performing near our long-term target ranges, nothing, including the potential impacts of the budget bill, has changed our outlook for the long-term performance of the business.' As previously announced, the Company expects to report its full second quarter results after the market closes on Wednesday, July 23, 2025, and will host a conference call and webcast to discuss the earnings release on Thursday, July 24, 2025, at 8:00 a.m. Eastern Time. About Molina Healthcare Molina Healthcare, Inc., a FORTUNE 500 company, provides managed healthcare services under the Medicaid and Medicare programs and through the state insurance marketplaces. For more information about Molina Healthcare, please visit Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 This press release contains forward-looking statements. The Company intends such forward-looking statements to be covered under the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements contained in this press release include, but are not limited to, statements regarding the Company's 2025 preliminary second quarter financial results, our 2025 guidance and our long-term performance. Actual results could differ materially due to numerous known and unknown risks and uncertainties. These risks and uncertainties are discussed under the headings 'Forward-Looking Statements,' and 'Risk Factors,' in the Company's Annual Report on Form 10‑K for the year ended December 31, 2024, which is on file with the U.S. Securities and Exchange Commission (the 'SEC'), and in the Company's other filings with the SEC, including its Quarterly Report on Form 10-Q for the period ended March 31, 2025. These reports can be accessed under the investor relations tab of the Company's website or on the SEC's website at Given these risks and uncertainties, the Company can give no assurances that its forward-looking statements will prove to be accurate, or that any other results or developments projected or contemplated by its forward-looking statements will in fact occur, and the Company cautions investors not to place undue reliance on these statements. All forward-looking statements in this release represent the Company's judgment as of July 7, 2025, and, except as otherwise required by law, the Company disclaims any obligation to update any forward-looking statement to conform the statement to actual results or changes in its expectations. Financial Disclosure Advisory All financial data in this press release is preliminary and represents the most current information available to the Company's management, as financial closing procedures for the quarter ended June 30, 2025 are not yet complete. These estimates are not a comprehensive statement of the Company's financial results for the quarter ended June 30, 2025 and actual results may differ from these estimates as a result of the completion of normal quarter-end accounting procedures and adjustments, including the preparation and review of the Company's financial statements for the quarter ended June 30, 2025 and the subsequent occurrence or identification of events prior to the formal issuance of our second quarter financial results. View source version on CONTACT: Investor Contact: Jeffrey Geyer,[email protected], 305-317-3012 Media Contact: Caroline Zubieta,[email protected], 562-951-1588 KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA INDUSTRY KEYWORD: GENERAL HEALTH OTHER HEALTH HEALTH MANAGED CARE HEALTH INSURANCE SOURCE: Molina Healthcare, Inc. Copyright Business Wire 2025. PUB: 07/07/2025 06:30 AM/DISC: 07/07/2025 06:31 AM
Business Wire
07-07-2025
- Business
- Business Wire
Molina Healthcare Announces Preliminary Second Quarter Financial Results and Updates Fiscal Year 2025 Earnings Per Share Guidance
LONG BEACH, Calif.--(BUSINESS WIRE)--Molina Healthcare, Inc. (NYSE: MOH) today announced preliminary financial results for the second quarter of 2025 and updated its full year 2025 adjusted earnings per share guidance. The Company's announcement of preliminary results was driven by recent market dynamics and off-cycle disclosures from others in the managed health care sector. The Company now expects its second quarter 2025 adjusted earnings to be approximately $5.50 per share (1), which is modestly below its prior expectations. This preliminary result reflects medical cost pressures in all three lines of business. The Company expects these medical cost pressures to continue into the second half of the year. As a result, the Company now expects its full year 2025 adjusted earnings to be in the range of $21.50 to $22.50 per share (1), reflecting a consolidated pre-tax margin of just under 4%, the low-end of its long-term guidance range. 'The short-term earnings pressure we are experiencing results from what we believe to be a temporary dislocation between premium rates and medical cost trend which has recently accelerated,' said Joseph Zubretsky, President and Chief Executive Officer. 'As we are still performing near our long-term target ranges, nothing, including the potential impacts of the budget bill, has changed our outlook for the long-term performance of the business.' As previously announced, the Company expects to report its full second quarter results after the market closes on Wednesday, July 23, 2025, and will host a conference call and webcast to discuss the earnings release on Thursday, July 24, 2025, at 8:00 a.m. Eastern Time. About Molina Healthcare Molina Healthcare, Inc., a FORTUNE 500 company, provides managed healthcare services under the Medicaid and Medicare programs and through the state insurance marketplaces. For more information about Molina Healthcare, please visit (1) Income tax effect calculated at the statutory tax rate of approximately 23.7%. (2) Computations assume approximately 53.7 million diluted weighted average shares outstanding. Expand (3) Income tax effect calculated at the statutory tax rate of approximately 23.7%. (4) Computations assume approximately 54.1 million diluted weighted average shares outstanding. The Company believes that certain non-GAAP (generally accepted accounting principles) financial measures are useful supplemental measures to investors in comparing the Company's performance to the performance of other public companies in the health care industry. The non-GAAP financial measures are also used internally to enable management to assess the Company's performance consistently over time. These non-GAAP financial measures, presented below, should be considered as supplements to, and not as substitutes for or superior to, GAAP measures. Adjustments represent additions and deductions to GAAP net income as indicated in the table below, which include the non-cash impact of amortization of acquired intangible assets, acquisition-related expenses, and the impact of certain expenses and other items that management believes are not indicative of longer-term business trends and operations. Adjusted net income represents GAAP net income recognizing the adjustments, net of tax. The Company believes that adjusted net income is helpful to investors in assessing the Company's financial performance. Adjusted net income per diluted share represents adjusted net income divided by weighted average common shares outstanding on a fully diluted basis. Expand Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 This press release contains forward-looking statements. The Company intends such forward-looking statements to be covered under the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements contained in this press release include, but are not limited to, statements regarding the Company's 2025 preliminary second quarter financial results, our 2025 guidance and our long-term performance. Actual results could differ materially due to numerous known and unknown risks and uncertainties. These risks and uncertainties are discussed under the headings 'Forward-Looking Statements,' and 'Risk Factors,' in the Company's Annual Report on Form 10‑K for the year ended December 31, 2024, which is on file with the U.S. Securities and Exchange Commission (the 'SEC'), and in the Company's other filings with the SEC, including its Quarterly Report on Form 10-Q for the period ended March 31, 2025. These reports can be accessed under the investor relations tab of the Company's website or on the SEC's website at Given these risks and uncertainties, the Company can give no assurances that its forward-looking statements will prove to be accurate, or that any other results or developments projected or contemplated by its forward-looking statements will in fact occur, and the Company cautions investors not to place undue reliance on these statements. All forward-looking statements in this release represent the Company's judgment as of July 7, 2025, and, except as otherwise required by law, the Company disclaims any obligation to update any forward-looking statement to conform the statement to actual results or changes in its expectations. Financial Disclosure Advisory All financial data in this press release is preliminary and represents the most current information available to the Company's management, as financial closing procedures for the quarter ended June 30, 2025 are not yet complete. These estimates are not a comprehensive statement of the Company's financial results for the quarter ended June 30, 2025 and actual results may differ from these estimates as a result of the completion of normal quarter-end accounting procedures and adjustments, including the preparation and review of the Company's financial statements for the quarter ended June 30, 2025 and the subsequent occurrence or identification of events prior to the formal issuance of our second quarter financial results.
