UPDATE: Magellan Health Q2 Profit Misses Street View

Magellan Health

reported downbeat second-quarter earnings. The Avon, Connecticut-based company reported a quarterly profit of $5 million, or $0.18 per share, versus a year-ago profit of $31.5 million, or $1.15 per share. Excluding certain items, its earnings came in at $0.39 per share. Its revenue climbed 5.4% to $888 million. However, analysts were expecting earnings of $0.57 per share on revenue of $863 million. Magellan Health's total costs and expenses climbed 11% to $877.4 million. The company's public-sector segment reported a 23% drop in revenue, while overall managed care and other revenue shrank 8.6% in the quarter. Barry M. Smith, chairman and chief executive officer said, “We are making great strides on our Magellan Complete Care of Florida and pharmacy management strategies, and taking the steps to ensure Magellan has the resources to aggressively grow in the future.” The company reaffirmed its profit forecast of $2.67 to $3.32 per share for the full year. Magellan Health shares closed at $62.82 yesterday.