Health care outsourcing company Magellan Health Services Inc. (NASDAQ: MGLN) on Tuesday raised its 2009 profit outlook above Wall Street expectations, and offered guidance for 2010, according to Associated Press.
The company also said it purchased about 782,000 shares at a total cost of $25.6 million through Monday's market close. Its new guidance reflects that.
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Magellan said it now expects net income this year to range between $2.77 and $2.95 per share. In October, the company said it expected full-year earnings to range from $2.41 to $2.70 per share.
Analysts polled by Thomson Reuters expect earnings per share of $2.61.
For 2010, Magellan expects earnings per share of $2.73 to $3.29 on revenue ranging from $3 billion to $3.2 billion. Analysts expect earnings per share of $2.91 on $2.96 billion in revenue.
Chairman and CEO Dr. Rene Lerer said in a statement that Magellan projects revenue growth across all lines of business next year.
Shares of Magellan Health climbed $2.12, or 5.8 percent, to $38.94 in afternoon trading. The stock earlier traded at $39.72, eclipsing a previous 52-week high of $39.50 set in January.
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