Molina Healthcare said profit and revenue fell in the third quarter, reflecting the impact of lower membership in Medicaid and Marketplace.
Molina Healthcare shares dropped 4.5% in extended trading.
The healthcare-services provider on Wednesday posted profit of $38 million, or 73 cents a share, down from $79 million, or $1.51 a share, the same time last year.
Adjusted earnings were 89 cents a share, beating analyst expectations of 79 cents a share.
Revenue was $11.08 billion, compared with $11.48 billion a year earlier. Analysts polled by FactSet expected $10.86 billion. The quarter’s premium revenue was $10.46 billion, down 4% from a year ago, due to lower membership in Medicaid and Marketplace, which was partially offset by rate updates.
“With the apparent plateauing of medical cost trend, which remains at elevated levels, and the strength of recent rate updates for 2027, we believe we are likely observing the beginning of the turn in Medicaid margins,” Chief Executive Joseph Zubretsky said.
As of Sept. 30, the company is serving about 4.9 million members, matching last quarter’s report. The company’s medical cost ratio was 93%, meeting analyst expectations.
Molina Healthcare expects its full-year earnings to be at least $2.38 per share, compared with its previous guidance of $2.15. The company reaffirmed its full-year premium revenue guidance and adjusted earnings guidance.
The readout follows Elevance Health on Wednesday lifting its yearly guidance after experiencing higher profit and revenue from increased premium yields and pharmacy growth.
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