The for-profit managed health care company continues to make gains with improved year-over-year net revenues and income.
Magellan Health posted improved performances in net income and net revenues compared to this time last year, though it lowered its end-of-year financial guidance according to its Q2 earnings report released Friday morning.
Magellan's net revenues totalled $1.8 billion during Q2, an increase of 27.6% year-over-year, while net income reached $13.6 million, an increase of 146.4% during Q2 2017. Adjusted net income grew by 65.2% from Q2 2017, totalling $23.3 million, and segment profit increased by 25.2% to $68 million.
Despite posting year-over-year revenue increases, Magellan Health CFO Jonathan Rubin announced that the company had lowered its guidance for the second half of 2018. Rubin cited slower membership growth, lower anticipated capitation rates, the impact of lost contracts, and cost pressures in Virginia and New York, as reasons for the guidance revision.
Related: Magellan Health and Envision Healthcare Added to Fortune 500 List
"I am confident in our strategy and optimistic about our continued growth trajectory,” Barry M. Smith, CEO of Magellan Health, said in a statement. "2018 will continue to be a year of focused execution for Magellan, and our strategy remains unchanged."
Below are highlights from Magellan's Q2 earnings report:
- The company extended its stock repurchase plan until October of 2020, totalling $400 million.
- Magellan currently oversees $244.4 million in unrestricted cash and investments.
- For the six months ending June 30, Magellan's cash flows from operations were $25 million, compared to $22.4 this time last year.
Additional information is available in Magellan's filing with the Securities and Exchange Commission.
Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.