Avon medical-network provider Magellan Health Services Inc. posted a better-than-expected quarterly profit, partly helped by effective cost-of-care management, and raised its full-year earnings outlook, Reuters reports.
The company, which provides a network of doctors and hospitals to its members, reported a third-quarter net income of $31 million, or 88 cents a share, compared with $23.5 million, or 58 cents a share, a year ago, Reuters reported today.
Revenue rose to $667.6 million from $656.5 million last year.
Analysts on average expected earnings of 64 cents a share, excluding special items, on revenue of $672.8 million, according to Thomson Reuters I/B/E/S.
For the full year, the company now expects earnings in the range of $2.41 a share to $2.70 a share. It had earlier forecast full-year earnings of $2.04 a share to $2.59 a share.
The news drove Magellan’s stock up in early trading by $2.22, or 7.3 percent, to $32.56.
