Molina drops as it cuts 2025 full-year earnings guidance

[Third Quarter Q3 Profits Stock Trading Chart 3D Background]
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* Molina Healthcare (NYSE:MOH [https://seekingalpha.com/symbol/MOH]) is down ~18% in after-hours trading Wednesday as it significantly reduced its EPS guidance for 2025.
* The health insurer is now projecting non-GAAP EPS of $14, down from a "no less than $19" estimate made in July with its Q2 financial results. Consensus is $18.62.
* Molina attributed the guidance cut to higher medical cost trend in all segments, which is disproportionately being felt in its marketplace business. Overall, it sees a 91.3% medical cost ratio ("MCR") for 2025. In July, the company projected it at 90.2%
* Q4 non-GAAP EPS guidance has also been changed to $0.35. While Medicaid is expected to contribute $3.00 per diluted share, its is projected to be offset by a loss of $2.65 per diluted share in the Medicare and marketplace segments. Consensus is $3.20.
* In Q3, Molina beat on the top line but missed [https://seekingalpha.com/news/4507104-molina-healthcare-non-gaap-eps-of-1_84-misses-by-2_05-revenue-of-11_47b-beats-by-490m] on the bottom.
* The insurer was hurt by a higher MCR in the quarter of 92.6% compared to 89.2% in the year-ago period.
* Non-GAAP net income fell to $1.84 per share from $6.01 in Q3 2024.

MORE ON MOLINA HEALTHCARE

* Molina Healthcare: Step Up In Medical Costs Creates An Attractive Opportunity [https://seekingalpha.com/article/4830915-molina-healthcare-step-up-in-medical-costs-creates-an-attractive-opportunity]
* Molina Healthcare: Resilient Growth At A Value Multiple Amid Medicaid Headwinds [https://seekingalpha.com/article/4827338-molina-healthcare-resilient-growth-at-a-value-multiple-amid-medicaid-headwinds]
* UnitedHealth Group And Molina Healthcare: Bottom Fishing In Healthcare [https://seekingalpha.com/article/4807302-unitedhealth-group-and-molina-healthcare-bottom-fishing-in-healthcare]
* Molina Healthcare Non-GAAP EPS of $1.84 misses by $2.05, revenue of $11.47B beats by $490M [https://seekingalpha.com/news/4507104-molina-healthcare-non-gaap-eps-of-1_84-misses-by-2_05-revenue-of-11_47b-beats-by-490m]
* Molina Healthcare Q3 2025 Earnings Preview [https://seekingalpha.com/news/4506293-molina-healthcare-q3-2025-earnings-preview]