Avon health care outsourcing company Magellan Health Services Inc. said Friday that its second-quarter profits shrank by 3.4 percent. But the earnings still beat market expectations, as lower costs helped buffer the company’s bottom line.
Magellan said its net income for the quarter ended rose to $34.2 million, or $1.07 a share, compared with $35.4 million, or $1.05 a share, a year ago. Â For the second straight quarter, however Magellan saw its revenues slide to $698.3 million, compared to $741.7 million a year earlier.
Meanwhile, operating expenses fell 6 percent to $627 million, mainly on lower care costs.
Analysts had expected earnings of 86 cents, on revenue of $703.7 million.
Looking ahead, the company boosted its outlook for 2011. It now expects profit between $3.30 and $3.83 per share, up from prior guidance of $2.84 to $3.33 per share. Analysts expect earnings of $3.64 per share.
