UPDATE 1-Magellan Health Q4 beats estimates, keeps 2010 view

* Q4 EPS $1.25 vs. est $1.04

* Q4 revenue $718.9 mln vs est $699.7 mln

* Backs 2010 view

Feb 26 (BestGrowthStock) – Magellan Health Services Inc (MGLN.O: )
posted a better-than-expected quarterly profit, helped by
strong Medicaid administration revenue.

Fourth-quarter net income was $43.7 million, or $1.25 a
share, compared to $23.6 million, or 61 cents a share in the
year-ago period. [ID:nWNAB2595]

Revenue for the company rose 9 percent to $718.9 million.

The company had acquired First Health Services, a unit of
insurer Coventry Health Care Inc (CVH.N: ), in 2009, leading to
fourth-quarter Medicaid administration revenue of $38.4
million.

Analysts were expecting the company to earn $1.04 a share,
on revenue of $699.7 million, according to Thomson Reuters
I/B/E/S.

The company, which provides of a network of doctors and
hospitals to its members, maintained its 2010 earnings forecast
of $2.73 to $3.29 a share, on revenue of $3.0 billion to $3.2
billion.

Analysts were expecting earnings of $3.05 a share, on
revenue of $3.05 billion, for the year.

Shares of the company closed at $39.51 Thursday on Nasdaq.

Stock Market Investing

(Reporting by Esha Dey in Bangalore; Editing by Aradhana
Aravindan)

UPDATE 1-Magellan Health Q4 beats estimates, keeps 2010 view