Molina healthcare Inc. (MOH: Quote) announced that it updated its 2013 guidance provided on February 7, 2013, to include the impact of the issuance of $550 million aggregate principal amount of cash convertible senior notes on February 15, 2013, and certain projected increases to its premium revenue.
The issuance of the $550 million of cash convertible senior notes is expected to reduce earnings per share by approximately $0.23.
For 2013, the company now expects net income to be $67 million, earnings of $1.45 per share, total revenue of $7.0 billion. Earlier, the company had expected net income of $74 million, earnings of $1.55, and Total Revenue of $7.00 billion for fiscal 2013. Analysts polled by Thomson Reuters expected the company to report earnings of $1.56 per share on revenues of $7.04 billion for fiscal 2013. Analysts’ estimates typically exclude special items.
Updated 2013 guidance includes: Operating income expected to increase $10 million or $0.13 per share compared with previously issued guidance due to newly expected increases in premium revenue. EBITDA expected to increase $10 million compared with previously issued guidance.
The upsizing of the company’s convertible note offering from the $375 million anticipated at launch to the ultimate amount of $550 million resulted in incremental interest costs of approximately $0.10 per share for all of 2013.
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by RTT Staff Writer
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