Magellan Health Services Inc. (MGLN) reported third quarter results last Friday. The company posted a 31.9% growth in net income to $31.0 million or 88 cents per share, compared to $23.5 million or 58 cents per share in the year-ago period, and easily surpassed the Zacks Consensus Estimate by 21 cents. The strong result was primarily driven by the acquisition of First Health coupled with the solid performance of the Specialty Pharmacy segment. Magellan Health offers managed behavioral healthcare, radiology benefits management and pharmaceutical management services to health plans, insurance companies, corporations, labor unions and various governmental agencies in the U.S. During July this year, the company completed the acquisition of First Health Services Corp., a subsidiary of Coventry Health Care Inc. (CVH). First Health provides pharmacy benefits administration, health care management and IT services to state Medicaid programs. The company said net revenues recorded ...

Magellan Health Services Inc. (MGLN) posted second-quarter earnings of 53 cents per share, matching the Zacks Consensus Estimate.

The company stated that sales fell 3.2% to $635.8 million, primarily due to the sluggish performance of its Public Sector, Commercial and Radiology Benefits Management segments.

Magellan also stated that it continues to anticipate full-year earnings of $2.04 to $2.59 per share.

The guidance is in-line with the Zacks Consensus Estimate of $2.21 per share, derived from 7 covering analysts, which has declined by a penny over the past month.

Meanwhile, the company said that it expects the acquisition of First Health Services Corp. from Coventry Health Care Inc. (CVH) to be completed later today. Magellan will pay $110 million in cash to Coventry for the deal and certain other assets related to the operation of First Health's business.

MGLN, a Zacks #3 Rank ("Hold") stock, has advanced more than 3% today on higher-than-usual

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