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Magellan Health (MGLN) Q4 Earnings Beat Estimates, Rise Y/Y

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Magellan Health, Inc.’s fourth-quarter 2019 earnings per share of $1.24 beat the Zacks Consensus Estimate by 29.2%. Moreover, the bottom line came in against the year-ago reported loss of 77 cents per share.

Revenues of $1.81 billion were down 2.3% year over year due to lower contribution from Managed Care and other. However, the top line beat the Zacks Consensus Estimate by 0.5%.

Segment profit of the company soared 354.4% year over year.

Total costs and expenses rose 5.6% year over year due to higher cost of goods sold, and depreciation and amortization.

Discover Financial Services Price, Consensus and EPS Surprise

Discover Financial Services Price, Consensus and EPS Surprise

Discover Financial Services price-consensus-eps-surprise-chart | Discover Financial Services Quote

Full-Year Highlights

For 2019, net revenues came in at $7.3 billion, up 2.2% year over year. Adjusted net income for the year was $91.7 per share, surging 48.7% year over year.

Segmental profit increased 10.8% year over year to $252.7 million. This upside can be attributable to solid contributions by Healthcare segment and Pharmacy Management segment.

For the entire year, unrestricted cash and investments totaled $195.4 million, up 49.8% from the level at 2018 end.

Capital Position

Cash flow from operations for the year ended 2019 was $164.8 million, up 42.3% year over year.

As of Dec 31, 2019, the company's cash and cash equivalents totaled $272.3 million, down 16.3% from the level on Dec 31, 2018.

As of Dec 31 2019, total assets of the company dipped 3.7% to $2.9 billion from the figure at 2018 end.

Total stockholder's equity decreased 8% year over year to $1.3 billion at 2019 end.

2020 Guidance

For 2020, the company expects its net revenues in the band of $7-$7.4 million. While adjusted net income is anticipated in the range of $83-$103 million, segment profit for the full year is projected from $250 million to $280 million.

Zacks Rank and Performance of Other Players

Magellan Health carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Among other medical sector players that already reported fourth-quarter earnings, the bottom-line results of UnitedHealth Group Incorporated (UNH - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) beat estimates while the same of Anthem Inc. missed the consensus mark.

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