Molina Healthcare Inc., a health insurer that specializes in Medicaid plans, reported a 38% rise in quarterly profit as premium revenue surged, but cut its 2008 earnings outlook partly because of declining interest rates and higher taxes.
First-quarter net income was $13.2 million, or 46 cents a share, compared with $9.6 million, or 34 cents, a year earlier. Revenue rose 31% to $737 million.
Analysts were expecting the Long Beach company to earn 45 cents a share on revenue of $708.8 million, according to Reuters Estimates.
For 2008, Molina expects to earn $2.10 to $2.40 a share, compared with its prior view of $2.25 to $2.45 a share. Analysts were expecting $2.16 a share.
Molina shares rose 30 cents to $23.51 before the earnings news.