It has been about a month since the last earnings report for Magellan Health . Shares have lost about 12.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Magellan Health due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Magellan Health Q2 Earnings Beat Estimates, Down YoY
Magellan Health, Inc.’s earnings per share of 86 cents beat the Zacks Consensus Estimate by 3.6%, but were down 5.5% year over year.
Revenues of $1.81 billion were down 1.1% year over year, due to reduction in Magellan Complete Care Florida and Medicare Part D footprint and PBM healthplan contract loss. This was partly offset by growth in MCC of Virginia and new PBM employer business. Revenues beat the Zacks Consensus Estimate by 4%.
Segment profit of $45.6 million was down 18% year over year, due to a decline in contribution from its Healthcare segment, partly offset by a slight increase in profit from Pharmacy Management segment.
Total cost and expense of $1.79 increased 1.1% year over year due to higher cost of goods sold.
Capital Position
Cash flow from operations for the six months ended Jun 30, 2019 was $21.1 million, down 28% year over year.
As of Jun 30, 2019, the company's cash and cash equivalents totaled $272.3 million, up 4% from year-end 2018 level.
Guidance
For 2019, the company affirmed its previously issued earnings per share guidance range of $3.70-4.69 and revenues of $7 billion-$7.2 billion.
How Have Estimates Been Moving Since Then?
Estimates review followed a downward path over the past two months.
VGM Scores
At this time, Magellan Health has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Magellan Health has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Why Is Magellan Health (MGLN) Down 12.5% Since Last Earnings Report?
It has been about a month since the last earnings report for Magellan Health . Shares have lost about 12.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Magellan Health due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Magellan Health Q2 Earnings Beat Estimates, Down YoY
Magellan Health, Inc.’s earnings per share of 86 cents beat the Zacks Consensus Estimate by 3.6%, but were down 5.5% year over year.
Revenues of $1.81 billion were down 1.1% year over year, due to reduction in Magellan Complete Care Florida and Medicare Part D footprint and PBM healthplan contract loss. This was partly offset by growth in MCC of Virginia and new PBM employer business. Revenues beat the Zacks Consensus Estimate by 4%.
Segment profit of $45.6 million was down 18% year over year, due to a decline in contribution from its Healthcare segment, partly offset by a slight increase in profit from Pharmacy Management segment.
Total cost and expense of $1.79 increased 1.1% year over year due to higher cost of goods sold.
Capital Position
Cash flow from operations for the six months ended Jun 30, 2019 was $21.1 million, down 28% year over year.
As of Jun 30, 2019, the company's cash and cash equivalents totaled $272.3 million, up 4% from year-end 2018 level.
Guidance
For 2019, the company affirmed its previously issued earnings per share guidance range of $3.70-4.69 and revenues of $7 billion-$7.2 billion.
How Have Estimates Been Moving Since Then?
Estimates review followed a downward path over the past two months.
VGM Scores
At this time, Magellan Health has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Magellan Health has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.