Avon health care outsourcing company Magellan Health Services Inc. said Thursday that its fourth-quarter profit fell 25 percent as higher costs outweighed a boost in revenue, The Associated Press reports.
The earnings beat Wall Street estimates, while revenue came up short.
Magellan’s profit fell to $32.9 million, or 95 cents per share, for the three months ended Dec. 31 from $43.7 million, or $1.25 per share, in the year-ago period. Revenue rose 4 percent to $749.2 million from $718.9 million.
Analysts polled by FactSet expected earnings of 91 cents per share and revenue of $761.7 million.
Magellan said costs increased 7 percent to $704 million in the quarter.
For the full year, the company earned $138.7 million, or $4.03 per share, up from $106.7 million, or $3.01 per share, in 2009. Revenue rose to $2.97 billion from $2.64 billion.
Looking ahead, the company expects 2011 profit between $2.93 and $3.43 per share. Analysts expect earnings of $3.31 per share.
