Magellan Health Services
The 10-second takeaway
For the quarter ended June 30 (Q2), Magellan Health Services missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. GAAP earnings per share grew significantly.
Margins expanded across the board.
Magellan Health Services notched revenue of $842.7 million. The five analysts polled by S&P Capital IQ hoped for a top line of $856.8 million on the same basis. GAAP reported sales were 4.6% higher than the prior-year quarter's $805.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $1.15. The five earnings estimates compiled by S&P Capital IQ predicted $1.01 per share. GAAP EPS of $1.15 for Q2 were 19% higher than the prior-year quarter's $0.97 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 8.4%, 90 basis points better than the prior-year quarter. Operating margin was 6.3%, 70 basis points better than the prior-year quarter. Net margin was 3.7%, 40 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $872.3 million. On the bottom line, the average EPS estimate is $1.00.
Next year's average estimate for revenue is $3.28 billion. The average EPS estimate is $3.92.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 71 members out of 79 rating the stock outperform, and eight members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give Magellan Health Services a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Magellan Health Services is hold, with an average price target of $54.60.
Is Magellan Health Services the best health care stock for you? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average health care logistics company. Click here for instant access to this free report.
- Add Magellan Health Services to My Watchlist.