11:20 AM EDT, 10/23/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Molina Healthcare ( MOH ) reported disappointing Q3 2025 results, with adjusted EPS of $1.84 falling significantly short of the $3.89 consensus estimate and declining 69% Y/Y due to elevated medical costs across all segments. Premium revenues rose 12% to $10.8B, driven by acquisitions and rate increases, but were overshadowed by a sharp deterioration in the medical care ratio (MCR) to 92.6% from 89.2% in 2024. The Marketplace segment was the primary underperformer, with MCR reaching 95.6% vs. 73.0% last year, while Medicaid showed relative resilience at 92.0% MCR. MOH raised full-year 2025 premium revenue guidance to about $42.5B, but sharply lowered adjusted EPS expectations to $14.00 from $24.50. The company's preliminary 2026 outlook suggests adjusted EPS will remain at 2025 levels, which is far below pre-Q3 market expectations. We cut our 12-month price to $115 from $132, valuing shares at 6.5x our 2026 EPS estimate, a strong discount to MOH's five-year average due to federal cuts to the Medicaid budget.