Magellan Health Services Earnings Preview: Can This Streak Continue?

Magellan Health Services (NASDAQ:MGLN) will report earnings before markets open on Thursday, July 25th. Magellan Health Services, Inc. coordinates and manages the delivery of behavioral healthcare treatment services. The Company’s services are provided through its contracted network of third-party treatment providers, which includes psychiatrists, psychologists, psychiatric hospitals, and residential treatment centers.

Here is your Cheat Sheet to Magellan Health Services Earnings:

Earnings Expectations: Analysts expect earnings of $1.01 per share on revenues of $856.83 million. Currently, the company’s P/E ratio stands at 10.30.

Analyst Trends:

Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1 to a profit $1.02. For the current year, the average estimate is a profit of $3.83, which is better than the estimate ninety days ago.

Earnings Trends:

Here’s how Magellan Health Services has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 2,625 2,642 2,969 2,799 3,207
Diluted EPS ($) 2.16 3.01 4.03 4.17 5.42

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 805.47 798.44 830.27 821.76
Diluted EPS ($) 0.97 2.36 1.32 1.01

Past Performance:
Magellan Health Services has beat analyst estimates 4 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]