Magellan Health Services Q1 Profit Down; Updates 2014 Outlook - Quick Facts

(RTTNews) - Magellan Health Services Inc. (MGLN) reported that its first-quarter net income attributable to the company dropped to $25.72 million or $0.92 per share, from $28.06 million or $1.01 per share in the same quarter last year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.75 per share for the quarter. Analysts' estimates typically exclude special items.

Total net revenues for the quarter rose to $966.48 million from $821.76 million in the prior year quarter. Five analysts had consensus revenue estimate of $1.00 billion for the quarter.

Relative to 2014, the company updated its guidance to reflect the impact of the CDMI acquisition as well as share repurchase activity. Its full year 2014 expectations are for revenue of $3.6 billion to $3.8 billion, net income of $53 million to $69 million, and segment profit of $238 million to $258 million.

The company increased its guidance for cash flow from operations to a range of $204 million to $226 million. Taking into account the impact of share repurchase activity through April 25, 2014, but not considering any potential future share repurchases, its guidance range for fully diluted earnings per share is estimated to be $1.89 to $2.46. Included in its projected earnings per share estimates is dilution of approximately $0.64 per share related to amortization of acquisition intangibles and stock compensation expense resulting from restricted stock purchases by sellers in the CDMI acquisition. Street currently is looking for fiscal year 2014 earnings of $2.53 per share on annual revenues of $3.73 billion.

The company said in March that it expected earnings per share of $2.02 to $2.58 and net revenue of $3.6 billion to $3.8 billion for fiscal 2014.