Molina Healthcare reports 4Q loss on rising medical costs

Molina Healthcare reports 4Q loss on costs

LONG BEACH, Calif. — Molina Healthcare Inc. posted a fourth-quarter loss Thursday on higher medical costs.

The company lost $4.5 million, or 18 cents per share, compared with profit of $14.8 million, or 55 cents per share, during the same period a year prior. Revenue rose 19 percent to $964.2 million from $812.5 million.

Analysts polled by Thomson Reuters expected a loss of 16 cents per share on revenue of $961.1 million.

Expenses rose 23 percent to $967.9 million, driven mainly by rising medical costs. The medical care ratio was rose to 86.8 percent from 84.8 percent. The medical care ratio is the percentage of premiums paid to cover medical claims.

For the full year, the company earned $30.9 million, or $1.19 per share, after profit of $59.6 million, or $2.15 per share, in 2008. Revenue rose to $3.67 billion from $3.11 billion.

Looking ahead, the company expects 2010 profit of about $1.50 per share on $3.9 billion in revenue. Analysts expect profit of $1.55 per share on revenue of $4 billion.

Shares of Molina Healthcare fell 12 cents to $21.50 in after-hours trading after gaining 24 cents to close at $21.61 during the regular trading session.