Molina Healthcare revises Q4 EPS to (85c) from ($1.64)
Revises Q4 revenue to $4.53B from $4.46B. Molina Healthcare announced that, due to an oversight, its unaudited financial results for the fourth quarter and full year of 2016, as reported on February 15, 2017, did not include the impact of a retroactive contract amendment received in the fourth quarter of 2016 that changed the minimum medical loss ratio calculation under California's Medicaid Expansion program. The pre-tax impact of that retroactive contract amendment was $68 million favorable for both the fourth quarter and the full year of 2016. On a per diluted share basis, the contract amendment was favorable to fourth quarter 2016 results by $0.79 and favorable to full year 2016 results by $0.78. The California Medicaid Expansion minimum medical loss ratio requirement terminated effective June 30, 2016, so this amendment is entirely retrospective in nature. Accordingly, this development has no impact on the Company's previously published outlook for 2017.