Molina Healthcare is projecting that profit will nearly double in 2015 as more Medicaid revenue flows into the managed-care company's coffers.
The Long Beach, Calif.-based insurer released its 2015 financial estimates Thursday ahead of its biannual investor day meeting.
Molina expects net income will reach $117 million by the end of this calendar year, which would be a little less than two times the $62.2 million profit recorded in 2014. Earnings per share will be near $2.35, slightly below Wall Street's prediction but still generally positive, analysts said.
Molina's profit projections are “quite reasonable and potentially conservative,” Stern Agee analyst Brian Wright wrote in a note to investors.
That's because Molina is anticipating another year of major top line growth. Total revenue will hover around $14.3 billion, which would be a 48% increase from 2014, Molina predicted.
Molina recently won the Medicaid contract for Puerto Rico and acquired a Medicaid managed-care plan in Florida, both of which are expected to lift company overall revenue this year.
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