Magellan Health Services Inc. (NASDAQ:MGLN) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Magellan Health Services Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 34.67% to $1.01 in the quarter versus EPS of $0.75 in the year-earlier quarter.
Revenue: Rose 6.28% to $821.8 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Magellan Health Services Inc. reported adjusted EPS income of $1.01 per share. By that measure, the company beat the mean analyst estimate of $0.88. It missed the average revenue estimate of $864.04 million.
Quoting Management: Magellan had a strong first quarter, with good performance across our businesses,” said Barry M. Smith, chief executive officer. “This is an important year as we continue to execute on our Magellan Complete Care and Magellan Pharmacy Solutions initiatives. In each of those areas, we continue to build out our capabilities in order to fuel aggressive growth, and we are seeing traction in the market. Magellan Complete Care, for example, is well positioned for market entry in Florida, having just completed its review as part of the final regulatory approval process. We expect to begin enrolling members by the third quarter with the ultimate objective of becoming a specialty plan serving Medicaid recipients with Serious Mental Illness.”
Key Stats (on next page)…