Magellan Health Services Inc. in Avon today raised its 2009 profit outlook above Wall Street expectations, and offered guidance for 2010.
The health care outsourcing company also said it purchased about 782,000 shares at a total cost of $25.6 million through Monday’s market close. Its new guidance reflects that.
Magellan said it now expects net income this year to range between $2.77 and $2.95 per share. In October, the company said it expected full-year earnings to range from $2.41 to $2.70 per share.
Analysts polled by Thomson Reuters expect earnings per share of $2.61.
For 2010, Magellan expects earnings per share of $2.73 to $3.29 on revenue ranging from $3 billion to $3.2 billion. Analysts expect earnings per share of $2.91 on $2.96 billion in revenue.
Chairman and CEO Dr. Rene Lerer said in a statement that Magellan projects revenue growth across all lines of business next year.
“Our 2010 guidance highlights the success of our growth initiatives, including acquisitions, new business sales, and product development,” he said.
At 11 a.m., Magellan shares were up $2.13, or 5.8 percent, at $38.95. (AP)
