Does The Street Have Molina Healthcare Figured Out?

Molina Healthcare (NYSE: MOH  ) is expected to report Q4 earnings on Feb. 7. 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 20.5% and EPS will shrink -56.9%.

The average estimate for revenue is $1.57 billion. On the bottom line, the average EPS estimate is $0.22.

Revenue details
Last quarter, Molina Healthcare booked revenue of $1.54 billion. GAAP reported sales were 31% higher than the prior-year quarter's $1.18 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 $0.07. GAAP EPS of $0.07 for Q3 were 83% lower than the prior-year quarter's $0.41 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 14.6%, 390 basis points worse than the prior-year quarter. Operating margin was 0.5%, 240 basis points worse than the prior-year quarter. Net margin was 0.2%, 140 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $6.02 billion. The average EPS estimate is -$0.12.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 127 members out of 139 rating the stock outperform, and 12 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Molina Healthcare a green thumbs-up, and four 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 $27.18.

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