Here's What Analysts Are Forecasting For Molina Healthcare, Inc. (NYSE:MOH) After Its Third-Quarter Results

Molina Healthcare, Inc. (NYSE:MOH) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat expectations with revenues of US$10b arriving 4.3% ahead of forecasts. Statutory earnings per share (EPS) were US$5.65, 2.5% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Molina Healthcare

After the latest results, the eleven analysts covering Molina Healthcare are now predicting revenues of US$43.5b in 2025. If met, this would reflect a notable 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 23% to US$24.56. In the lead-up to this report, the analysts had been modelling revenues of US$42.8b and earnings per share (EPS) of US$24.63 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$370. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Molina Healthcare, with the most bullish analyst valuing it at US$415 and the most bearish at US$309 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Molina Healthcare's revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2025 being well below the historical 17% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.7% annually. So it's pretty clear that, while Molina Healthcare's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Molina Healthcare going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for Molina Healthcare that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.