(By Balaseshan) Magellan Health Services Inc. (NASDAQ: MGLN) reported a 24.6% jump in quarterly earnings on strong revenue growth across its four segments. The company reaffirmed its 2013 earnings guidance below Street's view.
Earnings for the fourth quarter were $37.0 million or $1.32 per share, up from $29.74 million or $1.05 per share last year.
Revenue increased 15.1% to $830.27 million.
Analysts, on average, polled by Thomson Reuters had expected a profit of $1.05 per share on revenue of $835.55 million for the fourth quarter.
Revenue from Commercial jumped 41.2%, while Public Sector revenue gained 7.8%. Radiology Benefits Management revenue increased 11%, while Specialty Pharmaceutical Management revenue climbed 27.2%. Revenue from Medicaid Administration plunged 21.7%.
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Segment profit grew 22.9% to $77.7 million, which represents income from operations before stock compensation expense, depreciation and amortization, interest expense, interest income, gain on sale of assets, special charges or benefits, and income taxes.
Given these results, the company reaffirmed its full year 2013 segment profit guidance of $250 million to $270 million and earnings of $91 million to $109 million. The company still expects 2013 earnings per share of $3.27 to $3.92 and revenue of $3.56 billion to $3.74 billion, while Street predicts EPS of $3.98 on revenue of $3.62 billion.
MGLN closed Wednesday's regular session at $51.19. The stock has been trading between $40.24 and $56.58 for the past 52 weeks.