Molina Healthcare, Inc. (NYSE:MOH) announced their most recent earnings for the fourth quarter and year end results. Total revenue came in at a strong $2.8 billion, a 64% rise form the same period last year. Revenues from premiums came is at a solid $2.6 billion, a 62% bump over the same period last year. The company showed good internal metrics with participation high and their ability to utilize Medicare payments prudently.
Have technical analyst identified a strong wedge in MOH?
Better Metrics
The company spent the past quarter improving on operating efficiency as well as trying to adjust for the Affordable Care Act, and its effect on the coming year. Guidance was lowered for the next year based on the fact implementing the ACA program will add to costs. Strong enrollment numbers are surprising Molina Healthcare, Inc. (NYSE:MOH)’s execs, although they are helping the bottom line. This combined with the internal efficiency standards implemented last year are helping maximize each dollar taken in. Last year premium collections rose $18 per client. This generated almost $3 billion in revenue inflow for the company.
Medicare
Medicare was responsible for the biggest boost as the implementation of the ACA has pushed more people towards the insurance type. Dollars used for administrative per revenue dollar lowered also, showing strength in Molina Healthcare, Inc. (NYSE:MOH)’s internals. The biggest push though was the ACA. It created more revenue for the company than anything else, al Beit indirectly.
The company sells health care options within the Medicaid and Medicare programs and through the state insurance marketplaces. It operates health plans in 11 states across the nation;they currently serve more than 2.6 million members. Molina Healthcare, Inc. (NYSE:MOH) was founded by Dr. C. David Molina in 1980 as a provider organization serving low-income families in Southern California.
Technicals
The stock soared to a 52-week high and momentum indicators it is still receiving enthusiastic buying. Support is at$54 so there is not a whole lot of danger there. The stock is still neutral and although getting close, is not over sold yet.
Technicals
Molina Healthcare, Inc. (NYSE:MOH) saw a lower swing low last in 2011 and the following years have witnessed a fine long term bull market with only higher highs and higher lows coming. Any deep pullback has been retraced completely, showing the bullish strength which is evident from the latest rally too. The channel, which has contained the entire rise in 2014, is being tested again and again but may not push the price down much lower as all dips would be used to buy into the stock.
