Molina Healthcare, Inc. has released its unaudited consolidated financial statements for the third quarter of 2024, showing a strong increase in revenue and net income compared to the same period in the previous year.
The company reported total revenue of $10.34 billion for the three months ended September 30, 2024, a significant rise from $8.55 billion in Q3 2023. This growth was primarily driven by a substantial increase in premium revenue, which reached $9.69 billion, up from $8.24 billion year-over-year. Additionally, premium tax revenue surged to $508 million, compared to $176 million in the prior year.
Operating expenses also saw an increase, totaling $9.87 billion for the quarter, up from $8.19 billion in Q3 2023. Medical care costs accounted for the largest portion of these expenses, amounting to $8.64 billion, compared to $7.31 billion in the same quarter last year.
Despite the rise in expenses, Molina Healthcare achieved an operating income of $467 million, an increase from $359 million in the previous year. The company’s net income for the quarter was reported at $326 million, translating to a diluted net income per share of $5.65, compared to $4.21 in Q3 2023.
As of September 30, 2024, Molina Healthcare's total assets stood at $15.76 billion, reflecting an increase from $14.89 billion at the end of 2023. The company’s current assets, which include cash and cash equivalents of $4.73 billion and investments totaling $4.48 billion, indicate a solid liquidity position. Receivables also increased to $3.26 billion, up from $3.10 billion. The growth in goodwill and intangible assets, which rose to $1.92 billion from $1.45 billion, highlights the company’s strategic acquisitions and investments.
On the liabilities side, Molina Healthcare reported total liabilities of $10.99 billion, up from $10.68 billion at the end of the previous year. Current liabilities, including medical claims and benefits payable, amounted to $8.34 billion. The long-term debt increased to $2.33 billion. Despite these increases, Molina Healthcare's stockholders' equity rose to $4.77 billion, up from $4.22 billion.
Molina Healthcare has issued forward-looking statements regarding its financial performance and market expectations, cautioning investors about the inherent risks and uncertainties associated with such projections. The company emphasizes that its forward-looking statements represent its judgment as of October 23, 2024, and it disclaims any obligation to update these statements unless required by law. For the full year 2024, Molina Healthcare has provided guidance indicating an expected net income of approximately $1.25 billion, or $21.59 per diluted share. Adjustments for amortization of intangible assets, acquisition-related expenses, and other factors are anticipated to result in an adjusted net income of $1.36 billion, or $23.50 per diluted share.
Molina Healthcare's performance in the third quarter of 2024 demonstrates its resilience and adaptability in a competitive market. The company’s ability to increase revenue while managing expenses effectively positions it well for future growth. Molina Healthcare remains committed to delivering value to its stakeholders and enhancing its service offerings to meet the needs of its members.