Skip to main content

Analysis

Magellan Revenues Slide 2%, Other Financials Strong

By Jack O'Brien  
   February 28, 2020

This was the first earnings report released since Kenneth Fasola was hired as the company's CEO.

Magellan Health's net revenue for 2019 slid just over 2% but other financial metrics showed growth throughout the year. 

According to the company's Q4 earnings report, Magellan reported net income of $55.9 million for the full year, a 131.2% increase compared to 2018.

The company also achieved diluted earnings per share (EPS) of $2.28, up 135.1% year-over-year, along with a segment profit of $252.7 million, up 11% over the same period.

This was the first earnings report released since Kenneth Fasola was hired as the company's CEO. Fasola previously served as CEO of HealthMarkets, Inc., a Texas–based health insurer, and will replace outgoing CEO Barry Smith.

"We have made significant investments in Magellan Complete Care and Magellan Rx Management, and, as a result, we have experienced recent growth within those businesses, including the pharmacy PBA win in California," Fasola said in a statement. "I believe we have far more growth potential across our businesses. In particular, I see a large market for a revitalized and expanded suite of payer solutions within our Behavioral and Specialty Health business."

Related: Magellan Health Names New CEO

For Q4 2019, the managed care company saw net revenue slide 2.3% and posted a segment profit of $72.9 million, up 354.4% compared to Q4 2018.

Magellan also recorded a net income of $20.6 million, an improvement compared to a $28 million loss this last year, and a diluted EPS of $0.84, up from a diluted loss per share of $1.16.  

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.

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

Jack O'Brien is the finance editor at HealthLeaders, a Simplify Compliance brand.

Photo credit: KIEV, UKRAINE - Jan 3, 2019: Magellan Health Managed care company logo seen displayed on smart phone - Image / Editorial credit: IgorGolovniov / Shutterstock.com


Get the latest on healthcare leadership in your inbox.