NEW YORK (
Magellan Health Services
stock has surged 5.8% to $41.80 after the company provided a consensus-beating fourth-quarter profit and confirmed 2010 guidance that's roughly in line with analysts' estimates.
Magellan expects to generate net revenue in the range of $3 billion to $3.2 billion and earnings per share in the range of $2.73 to $3.29 for 2010. Magellan says that over the past several months, it has met with a number of health plans and state governments who are looking to Magellan for support in addressing their specialty health care management needs.
Analysts are forecasting earnings of $ 3.05 for Magellan on revenue of $3.05 billion for 2010.
For the fourth quarter of 2009, Magellan reported net revenue of $718.9 million, up from $661.8 million in the prior year. Net income in the quarter was $43.7 million, or $1.25 a share, an improvement from $23.6 million, or 61 cents a share a year ago. Magellan declared one of the highlights of the quarter to be the acquisition of
First Health Services
, which strengthened the company's Medicaid capabilities.
The consensus estimate for the Magellan's fourth quarter was $1.04 on revenue of $699.65 million.
Related stocks are trading in mixed territory late Friday morning.
has edged up 0.9% to $63.50, while
has fallen 0.4% to $46.40.
-- Reported by Andrea Tse in New York
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