Fortune-500 company Magellan Health, Inc. (NASDAQ: MGLN) today announced its fiscal 2019 outlook.
The healthcare giant now sees net revenue of $7.2-$7.5 billion generating a net income of $52-$79 million. Earnings is expected to be $2.14-$3.25 per share, while adjusted earnings is touted to be $3.70-$4.69 a share.
“Over the last few years, Magellan Health has evolved considerably by building our successful strategy to focus on the management of complex populations, specialty healthcare and pharmacy,” said CEO Barry M. Smith.
According to the CEO, Magellan “has significant earnings power” in its current portfolio. However, the company does admit that its margins are not competitive enough. “As a result, we have begun a multi-year margin improvement plan,” said Barry Smith.
“Entering the year, we are highly focused on execution of our key business priorities and multi-year profitability improvement” – CFO Jonathan N. Rubin
Segment profit for 2019 is expected to be $270-$290 million on favorable impacted by new business raking in $600 million in revenue, same- store growth, healthcare contracts, administrative cost reductions.
However, these factors are touted to be pulled down by contract terminations with year-over-year revenue impact of about $660 million and lower levels of discretionary benefits in 2018.
“Entering the year, we are highly focused on execution of our key business priorities and multi-year profitability improvement,” said CFO Jonathan N. Rubin.
Magellan Health also reiterated its FY18 guidance that it announced with third-quarter earnings on Nov.7. The company expected to announce its fourth-quarter results before market hours on Feb. 28, 2019.