Molina Healthcare Fires CEO, CFO; Stock Surges

(RTTNews) - Molina Healthcare Inc. (MOH) said that Joseph White, Chief Accounting Officer, has been named Interim President and Chief Executive Officer replacing Mario Molina. The Board will immediately commence the search process for a permanent CEO. White has also been named Chief Financial Officer, replacing John Molina.

In addition, the Board of Directors has named current Director Dale Wolf as Non-Executive Chairman of the Board. These changes are effective immediately.

MOH closed Tuesday's Regular trading at $59.75, up $8.95 or 17.62 percent.

Dr. J. Mario Molina and John C. Molina will continue to serve as directors on the Board, and Dr. Molina remains a candidate for re-election as a director at the Company's upcoming annual meeting.

"In light of the Company's disappointing financial performance, the Board has determined to change leadership in order to drive profitability through operational improvements. These changes represent targeted and deliberate actions to enhance the Company's focus and improve its competitive position within the healthcare industry," said Dale B. Wolf, Chairman.

Separately, Molina Healthcare, reported that its net income per diluted share increased to $1.37 in the first quarter of 2017 compared with $0.43 reported for the first quarter of 2016. Adjusted net income per share increased to $1.47 in the first quarter of 2017, compared with $0.51 in the first quarter of 2016. Income before income taxes increased $67 million to $131 million in the first quarter of 2017 from $64 million in the first quarter of 2016.

The company confirmed its 2017 Outlook for earnings per share and adjusted earnings per share, to $2.53 and $2.90, respectively, and revising the 2017 Outlook for the impact of the $75 million acquisition termination fee received in the first quarter of 2017.