Magellan Health Services Inc. (MGLN) reported that its first-quarter net income increased to $28.06 million or $1.01 per share from $20.79 million or $0.75 per share last year. Total net revenue increased to $821.76 million from $773.21 million last year.
On average, six analysts polled by Thomson Reuters expected the company to report profit of $0.88 per share for the quarter. Analysts' estimates typically exclude special items. Analysts expected revenue of $864.04 million for the quarter.
The company revised its 2013 guidance and now expects net revenue in the range of $3.3 billion to $3.5 billion, net income of $90 million to $108 million, and profit per share in the range of $3.27 to $3.93. The company said the decrease in its guidance is driven primarily by the assumption that contract in Maricopa County does not extend beyond September 30, 2013, partially offset by the impact of favorable prior year care development and cost trends. Analysts expect the company to report fiscal 2013 profit per share of $3.72 on revenue of $3.44 billion.
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