Molina Healthcare forecasts weak 2013 on higher expenses
Oct 30 (Reuters) - Molina Healthcare Inc forecast a full-year profit below market estimates, citing higher administrative expenses related to the Affordable Care Act and delays in patient enrollments due to the uncertainties in its rollout.
The company's shares fell about 8 percent in extended trading.
"Given the technical difficulties and the reliability of the information, we believe it is premature to comment on enrollment figures at this time," the company said on an earnings conference call.
Molina expects profit from continuing operations to be about $1.15 per share, well below analyst estimates of $1.62, according to Thomson Reuters I/B/E/S.
General and administrative expenses increased about 40 percent in the third quarter, due to the higher costs to accommodate the Affordable Care Act and $14 million in claims related to the Texas health plan.
Net income from continuing operations decreased to about $7.6 million, or 16 cents per share. Analysts had estimated 31 cents per share.
Total revenue rose 9 percent to $1.58 billion, below analyst expectations of $1.71 billion.
The company expects fourth-quarter results to break even as general and administrative expenses spill into the quarter.
(Reporting By Adithya Venkatesan; Editing by Don Sebastian)