Magellan Health (MGLN) Tops Q3 EPS by 8c, Revenues Beat; Lowers FY18 EPS Guidance Below Consensus, Affirms FY18 Revenue Outlook

Magellan Health (NASDAQ: MGLN) reported Q3 EPS of $1.45, $0.08 better than the analyst estimate of $1.37. Revenue for the quarter came in at $1.85 billion versus the consensus estimate of $1.85 billion.

• Net revenue increased 31 percent over the third quarter of 2017 to $1.9 billion.
• Net income decreased 16 percent over the third quarter of 2017 to $27.1 million.
• Segment profit was $88.3 million compared to $87.7 million in the third quarter of 2017.
• Adjusted net income decreased 11 percent from the third quarter of 2017 to $36.2 million.
• Unrestricted cash and investments were $232.2 million as of September 30, 2018. Approximately $134.2 million of the unrestricted cash and investments at September 30, 2018 related to excess capital and undistributed earnings held at regulated entities.
• The Company is lowering its full year 2018 earnings guidance.

“In light of our recent performance and lowering of guidance, we acknowledge that our financial results have been below our expectations. In the short-term, we expect the environment to remain challenging, but we see significant long-term opportunity in both our Healthcare and Pharmacy businesses,” said Barry M. Smith, chairman and chief executive officer of Magellan Health. “We are focused on partnering with our customers to increase the quality of healthcare for our members while effectively managing both the cost of care and administrative expenses.”

GUIDANCE:

Magellan Health sees FY2018 EPS of $4.26-$4.90, versus the consensus of $5.40. Magellan Health sees FY2018 revenue of $7.3-7.5 billion, versus the consensus of $7.37 billion.

For earnings history and earnings-related data on Magellan Health (MGLN) click here.

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