Magellan Health Net Income Tops $18.3M, Guidance Maintained

At the end of April, the Scottsdale–based for-profit managed care company entered into a definitive agreement to sell Magellan Complete Care for $820 million.

Magellan Health's net income skyrocketed in Q1 2020, according to the company's latest earnings report released Monday morning.

Magellan recorded a net income of $18.3 million, well above the $400,000 in net income reported in Q1 2019. Additionally, the company saw its net revenue rise by 3.2% year-over-year while its earnings per share (EPS) rose 187.5% over the same period.

The company also maintained its full year guidance despite the ongoing coronavirus disease 2019 (COVID-19) outbreak.

Related: Magellan Revenues Slide 2%, Other Financials Strong

For 2020, Magellan projects net revenue between $7 billion to $7.4 billion, net income between $42 million to $62 million, and diluted EPS in the range of $1.69 to $2.49.

C-suite perspective:

"Magellan Health has a vital, ongoing and shared responsibility in protecting the mental and physical health of millions of people,” Kenneth Fasola, CEO of Magellan, said in a statement. "In fact, the coronavirus pandemic has made abundantly clear what we already knew – the behavioral health of individuals remains a critical societal need, presenting challenges for health plans, employers and government payors – a challenge and opportunity Magellan is well positioned to address."

Jonathan Rubin, CFO of Magellan, added that while the coronavirus has introduced uncertainties going forward, the company's business fundamentals are "on track."

Outside of the company's latest financials, Magellan recently struck a major transaction with Molina Healthcare, the health insurer based in Long Beach, California.

At the end of April, the Scottsdale–based for-profit managed care company entered into a definitive agreement to sell Magellan Complete Care to Molina for $820 million, net tax benefits. The MCC deal is expected to close during Q1 2021.

Related: Molina Reaffirms 2020 Guidance, Announces $820M Deal With Magellan

For complete financial information, review Magellan's filing with the Securities and Exchange Commission.