Magellan Health, Inc. (MGLN) has reported a 28.89 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $35.18 million, or $1.50 a share in the quarter, compared with $27.29 million, or $1.12 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $42.44 million, or $1.80 a share compared with $33.77 million or $1.39 a share, a year ago.
Revenue during the quarter went down marginally by 0.42 percent to $1,263.38 million from $1,268.74 million in the previous year period. Gross margin for the quarter expanded 6 basis points over the previous year period to 7.40 percent. Total expenses were 94.86 percent of quarterly revenues, up from 94.83 percent for the same period last year. That has resulted in a contraction of 3 basis points in operating margin to 5.14 percent.
Operating income for the quarter was $64.96 million, compared with $65.60 million in the previous year period.
"We executed against our strategy and are very pleased with results for the year. We increased our revenue by over 5 percent and segment profit by over 9 percent versus 2015. In addition, we completed three new acquisitions ��" The Management Group, or TMG, the Armed Forces Services Corporation, or AFSC, and Veridicus ��" all of which helped to expand our capabilities. We look forward to executing on our growth strategy in 2017," said Barry Smith, chairman and chief executive officer of Magellan. "I'd like to thank the entire Magellan team who helped to achieve our great results this year. At every level of our Company, our employees are committed to leading humanity to healthy, vibrant lives."
For fiscal year 2017, Magellan Health, Inc. expects revenue to be in the range of $5,795 million to $6,095 million. The company forecasts net income to be in the range of $90 million to $114 million. The company projects adjusted net income to be in the range of $123 million to $145 million. The company projects diluted earnings per share to be in the range of $3.72 to $4.71. The company projects diluted earnings per share to be in the range of $5.08 to $5.99 on adjusted basis.
Operating cash flow drops significantly
Magellan Health, Inc. has generated cash of $66.70 million from operating activities during the year, down 57.64 percent or $90.76 million, when compared with the last year.
The company has spent $244.34 million cash to meet investing activities during the year as against cash outgo of $193.19 million in the last year.
Cash flow from financing activities was $233.12 million for the year as against cash outgo of $185.87 million in the last year period.
Cash and cash equivalents stood at $304.51 million as on Dec. 31, 2016, up 22.28 percent or $55.48 million from $249.03 million on Dec. 31, 2015.
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