Stock News in Focus: Magellan Health, Inc. (NASDAQ: MGLN)

On Friday, Magellan Health, Inc. (NASDAQ: MGLN) spotted trading 0.40% off 52-week high price. On the other end, the stock has been noted 48.75% away from the low price over the last 52-weeks. The stock changed 0.52% to recent value of $77.17. The stock transacted 304918 shares during most recent day however it has an average volume of 185.65K shares. The company has 24.29M of outstanding shares and 24.19M shares were floated in the market.

Magellan Health, Inc. (MGLN) recently reported financial results for the third quarter ended September 30, 2019.

Highlights Include:

  • Net revenue reduced 1.3 percent over the third quarter of 2018 to $1.8B.
  • Net income reduced 21.6 percent over the third quarter of 2018 to $21.3M.
  • Section profit reduced 18.3 percent over the third quarter of 2018 to $72.2M.
  • Adjusted net income reduced 16.3 percent over the third quarter of 2018 to $30.2M.
  • Unrestricted cash and investments were $220.3M as of September 30, 2019. About $105.4M of the unrestricted cash and investments at September 30, 2019 is related to excess capital and undistributed earnings held at regulated entities.
  • The Company is revising its full year 2019 earnings guidance.
  • On October 31, 2019, the Company’s Board of Directors reported the appointment of Kenneth J. Fasola as Chief Executive Officer, effective November 14, 2019.

Net Revenue

For the quarter, revenue was $1.8B, which represents a decrease of 1.3 percent over the same period in 2018. Growth in MCC Virginia and new business was essentially offset by MCC Florida and Medicare Part D footprint reductions as well as the before discussed PBM health plan contract loss Because of an acquisition.

Section Profit

Section profit was $72.2M for the third quarter, contrast to $88.3M in the previous year quarter.

  • Healthcare section profit for the third quarter of 2019 was $44.7M versus $61.7M in the third quarter of 2018. Healthcare results for the current quarter include net favorable out of period adjustments of about $4M, contrast to $22M of net favorable out of period adjustments in the previous year quarter. Adjusting for these out of period items, section profit was $1M higher than the previous year quarter. This net increase in section profit is driven by the progress against the cost of care initiatives in Virginia, offset by care pressure in the Behavioral and Specialty Healthcare business and lower discretionary benefits in 2018.
  • Pharmacy Management section profit was $35.4M for the quarter ended September 30, 2019, which was a raise of 5.2 percent from the third quarter of 2018. This year over year increase was primarily driven by growth and improved profitability in Magellan Rx Specialty.
  • Corporate costs inclusive of eliminations, but not including stock compensation expense, totaled $8.0M, contrast to $7.0M in the previous year’s quarter.

Its earnings per share (EPS) expected to touch remained -77.10% for this year while earning per share for the next 5-years is expected to reach at -1.30%. MGLN has a gross margin of 2.40% and an operating margin of 0.60% while its profit margin remained 0.10% for the last 12 months.   According to the most recent quarter its current ratio was 1.7 that represents company’s ability to meet its current financial obligations. The price moved ahead of 11.40% from the mean of 20 days, 19.63% from mean of 50 days SMA and performed 16.22% from mean of 200 days price. Company’s performance for the week was 6.29%, 23.12% for month and YTD performance remained 35.65%.


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