By Anastasia Tomazhenkova: A health care management company Magellan Health Services Inc. posted that its fourth quarter profit rose 39%, helped by growth in its public sector behavioral health and radiology benefits management segments.
The company, which provides a network of doctors and hospitals to its members, reaffirmed its 2008 outlook.
For the quarter ended December 31, net income rose to 31.3 million dollars, or 78 cents a share, from 22.5 million dollars, or 58 cents a share in the prior-year quarter.
Analysts were expecting earnings of 66 cents a share, before items, on revenue of 663.7 million dollars.
Revenue rose 43% to 658 million dollars from 461.3 million dollars in the fourth quarter of 2006. Analysts predicted revenue of 660.2 million dollars.
Health plan revenue fell 7% but that decline was offset by higher revenue in every other segment. In the company's largest division - public sector behavioral health - revenue jumped 64%.
For the year, profit rose 9% to 94.2 million dollars, or 2.36 dollars a share, from 86.3 million dollars, or 2.23 dollars a share in the prior year.
Analysts were expecting earnings of 2.16 dollar a share, excluding special items, on revenue of 2.60 billion dollar.