Magellan Health Reports Improved Earnings, Revenue For Second Quarter

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Magellan Health Services Inc. of Avon reported improved earnings and revenue Thursday for the second quarter of the year.

Net income for the three-month period ending June 30 was $31.5 million, or $1.15 per share, compared with $27 million, or 97 cents per share, during the same period a year ago.

Revenue increased 4.6 percent during the quarter to $842.7 million from $805.5 million during the same period last year.

Magellan Health is a specialty insurer in the fields of managing behavioral and mental health services as well as radiology and specialized pharmaceuticals.

The company improved sales in its commercial, public-sector, radiology benefits and pharmacy segments. Commercial revenue was up to $199.5 million for the quarter, from $178.2 million during the same period last year.

Revenue in public sector health insurance — such as government funded health care — was up to $414.9 million from $410.1 million. Radiology benefits was up to $92.7 million from $88.8 million. The pharmacy segment’s revenue was up to $61.3 million from $56.5 million.

Goldman Sachs analyst Matthew Borsch wrote in a note to investors that net revenues of $843 million fell short of Goldman’s estimate of $873 million. Earnings per share of $1.15 was about in line with Borsch’s estimate of $1.16, but ahead of Wall Street’s estimate of $1.01, Borsch wrote.

About Matthew Sturdevant

Full-time staff journalist at The Hartford Courant and magazine freelancer with a master's degree in writing from Dartmouth. My work has appeared in The Los Angeles Times, The Chicago Tribune, Taiwan News, The Baltimore Sun and many other news sources. My blog has been referenced by Politico.com, the Kaiser Family Foundation, the Georgetown Law Library and a number of organizations in healthcare and business. Sturdevant’s blog is "a well-written wealth of ideas," said The Donald W. Reynolds National Center for Business Journalism, (businessjournalism.org, May 18, 2011). I have experience writing for newspapers, magazines, Web sites and blogs as well as shooting and editing video. I made regular appearances on news-talk radio and on the NBC affiliate station in Corpus Christi, Texas. I made occasional appearances on the Fox affiliate in Connecticut promoting Hartford Courant articles.

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