AVON, Conn. (AP) -- Magellan Health says that earnings next year will fall well below 2013 as the company heads into what it described as a transitional year.
The manager of behavioral health, radiology and pharmacy benefits expects 2014 earnings to range between $2 and $2.56 per share on revenue of $3.61 billion to $3.80 billion. Wall Street had been looking for earnings of $3.27 per share and revenue of $3.41 billion in revenue, according to a poll by FactSet.
The forecast, however, does include the impact of stock buybacks to date and a tax imposed as part of the health care overhaul, the federal law that aims to provide coverage for millions of uninsured people. Analysts typically exclude one-time items from their estimates.
Magellan maintained its 2013 earnings forecast of between $4.28 and $4.93 per share, while analysts forecast $4.54 per share.
The Avon, Conn., company, whose clients include clients include health plans, employers and government agencies, anticipates having "a more stable customer base" by the end of next year, Chief Financial Officer Jon. Rubin said.
Shares of Magellan Health Services Inc. closed at $59.80 on Monday. Shares have climbed 22 percent so far this year.