Magellan Q3 Profit Decreases; Raises Annual Earnings Guidance

(RTTNews) - Magellan Health, Inc. (MGLN) Friday reported a decline in net profit, as higher cost of goods sold in the pharmacy unit along with a rise in operating expenses eclipsed revenue growth. The company also increased its annual earnings guidance.

Net profit declined to $27.1 million or $1 per share, from $47.2 million or $1.70 last year. Excluding certain items, the company earned $35.2 million or $1.30 per share.

On average, analysts polled by Thomson-Reuters estimated earnings to be $0.46. Analysts' estimates typically exclude one-time items.

Magellan's revenues totaled $923.2 million compared with $873.6 million in the previous year. Analysts projected revenues to be $936.19 million.

Magellan raised its full-year adjusted earnings guidance to $3.21-$3.72, from the previously announced $2.67-$3.32. The company, also increased its net income expectations to $63 million -$77 million, from $53 million -$69 million. Revenues for the full year are expected to be $3.6-$3.8 billion.

Analysts see annual earnings of $2.16 and revenues of $3.79 billion.