Magellan Health Services Inc., which helps health plans, employers and government agencies manage health benefits, said Thursday that its fourth-quarter earnings climbed 24 percent, helped by gains in managed care and dispensing revenue, The Associated Press reports.
Magellan netted $37 million, or $1.32 per share, in the three months that ended Dec. 31, up from $29.7 million, or $1.05 per share, netted in the final quarter of 2011.
Revenue grew 15 percent to $830.3 million vs. $721.5 million a year ago.
Analysts expected, on average, earnings of $1.05 per share on $827.5 million in revenue, according to FactSet.
Magellan also saw direct service costs and other operating expenses climb more than 6 percent to $145 million in the quarter.
For the full year, Magellan earned $151 million, or $5.42 per share, up from $129.6 million, or $1.05 per share, a year ago. Revenue rose to $3.21 billion in revenue from $2.8 billion a year earlier.
For 2013, the company expects earnings of $3.27 to $3.92 per share on $3.56 billion to $3.74 billion in revenue. The earnings forecast includes share repurchases through Feb. 22 but doesn’t factor in future buybacks.
Analysts expect, on average, earnings of $3.88 per share on $3.63 billion in revenue.
