Molina Healthcare (MOH) Nears 52-Week Low as Earnings, Forecast Disappoint

We recently published 10 Stocks Slump Amid Wall Street Cheer; 2 Hit Rock Bottom. Molina Healthcare, Inc. (NYSE:MOH) is one of the worst performers on Thursday.

Molina Healthcare extended losses to a third straight session on Thursday, to be just 30-cents shy of its 52-week low, as investor sentiment was dragged by a dismal earnings performance and a 31-percent lower net income forecast for the full-year 2025.

In an updated report, Molina Healthcare, Inc. (NYSE:MOH) said it now expects 2025 net profit to settle at $630 million, significantly lower than the $912 million projected previously on the back of higher medical cost trend in all segments alongside unprecedented medical cost trend which is expected to continue through the end of the year.

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Adjusted net income was also lowered by 27.8 percent to $742 million from $1.028 billion as previously expected.

However, total revenues were expected to grow higher by $500 million to $44.5 billion versus the $44 billion as targeted prior.

In the third quarter of the year, Molina Healthcare, Inc. (NYSE:MOH) said net income fell by 76 percent to $79 million from $326 million year-on-year, while total revenues increased by 11 percent to $11.48 billion from $10.34 billion in the same comparable period.

“Our Medicaid business continues to perform well in a challenging medical cost trend environment,” said Molina Healthcare, Inc. (NYSE:MOH) President and CEO Joseph Zubretsky.

“The headline for the quarter is that approximately half of our underperformance is driven by the Marketplace business, and that Medicaid, while experiencing some pressure, is producing strong margins. We continue to grow, we believe the margin challenges will not persist, and we are encouraged by the margin improvement potential in 2026,” he noted.

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Disclosure: None. This article is originally published at Insider Monkey.