Tuesday, December 13, 2011

Magellan Health Services Inc earnings per share forecast 2012

Magellan Health Services Inc earnings per share forecast 2012 ; Magellan Health Services Inc. said Tuesday it expects 2012 earnings to range between $91 million and $109 million, as the health care management firm continues to expand its presence in Medicaid, the state-federal program that provides health coverage for the needy, aged and disabled.

The Avon, Conn., company's initial guidance for the new year translates to earnings per share ranging from $3.25 to $3.89. It expects revenue between $3.2 billion and $3.4 billion.

Analysts surveyed by FactSet expect, on average, 2012 earnings of $4.07 per share on $3.09 billion in revenue.

Magellan's 2012 projection represents a decrease from the company's 2011 forecast for earnings of $3.75 to $4.36 per share. Analysts expect earnings of $3.87 per share for 2011.

A spokesman for the company said Magellan's 2012 guidance does not factor in share buybacks, which can raise earnings per share by reducing the number of shares. In contrast, the 2011 projection includes share repurchases totaling $398 million through Dec. 12.

The 2012 figure also includes about $27 million in expenses tied to the company's growth pushes in its Medicaid and pharmacy businesses.

The company also said Tuesday that it has a new senior, secured revolving credit line totaling $230 million. That replaces an $80 million facility. Magellan also said it has started buying back shares under a new, $200 million program authorized by its board of directors in October.

Magellan's customers include health plans, employers and government agencies. It manages behavioral health, radiology, specialty pharmaceuticals and public sector pharmacy benefits programs.

Its shares rose $1.96, or 4.1 percent, to $50.03 in premarket trading. For the latest updates on the stock market, visit Stock Market Today

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