Magellan Health (MGLN) Q4 Earnings Beat Estimates, Rise Y/Y

Magellan Health, Inc.’s (NASDAQ:MGLN) fourth-quarter 2019 earnings per share of $1.24 beat the Zacks Consensus Estimate by 29.2%. Moreover, the bottom line came in against the year-ago reported loss of 77 cents per share.

Revenues of $1.81 billion were down 2.3% year over year due to lower contribution from Managed Care and other. However, the top line beat the Zacks Consensus Estimate by 0.5%.

Segment profit of the company soared 354.4% year over year.

Total costs and expenses rose 5.6% year over year due to higher cost of goods sold, and depreciation and amortization.

Full-Year Highlights

For 2019, net revenues came in at $7.3 billion, up 2.2% year over year. Adjusted net income for the year was $91.7 per share, surging 48.7% year over year.

Segmental profit increased 10.8% year over year to $252.7 million. This upside can be attributable to solid contributions by Healthcare segment and Pharmacy Management segment.

For the entire year, unrestricted cash and investments totaled $195.4 million, up 49.8% from the level at 2018 end.

Capital Position

Cash flow from operations for the year ended 2019 was $164.8 million, up 42.3% year over year.

As of Dec 31, 2019, the company's cash and cash equivalents totaled $272.3 million, down 16.3% from the level on Dec 31, 2018.

As of Dec 31 2019, total assets of the company dipped 3.7% to $2.9 billion from the figure at 2018 end.

Total stockholder's equity decreased 8% year over year to $1.3 billion at 2019 end.

2020 Guidance

For 2020, the company expects its net revenues in the band of $7-$7.4 million. While adjusted net income is anticipated in the range of $83-$103 million, segment profit for the full year is projected from $250 million to $280 million.

Zacks Rank and Performance of Other Players

Magellan Health carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Among other medical sector players that already reported fourth-quarter earnings, the bottom-line results of UnitedHealth Group Incorporated (NYSE:UNH) and HCA Healthcare, Inc. (NYSE:HCA) beat estimates while the same of Anthem Inc. (NYSE:ANTM) missed the consensus mark.

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