Avon’s Magellan Health Services expects lower 2012 profits

Avon-based Magellan Health Services said Tuesday that it expects its 2012 profits to be slightly below market expectations.

The company, which provides services to insurance companies and various governmental agencies, sad it expects 2012 profits in the range of $91 million, or $3.25 per share,  to $109 million, or $3.89 per share.

Analysts, on average, were expecting $4.10 per share, according to Thomson Reuters.

Magellan also confirmed its 2011 guidance, projecting full year net income in the range of $116.5 million to $135.5 million.

Additionally, the company announced a new senior secured revolving credit facility totaling $230 million, which replaces a current $80 million facility.