Magellan Health Services Inc. said Thursday that its second-quarter profit nearly doubled, and the health care outsourcing company raised its profit estimate for the year.
Magellan's profit jumped 90 percent to $35.1 million, or $1.05 per share, from $18.5 million, or 53 cents per share, in the year-ago period. Revenue rose 17 percent to $741.7 million from $635.8 million.
Analysts predicted profit of 74 cents per share and revenue of $748.3 million, according to a Thomson Reuters survey.
Magellan said cost of care increased 7 percent to $472.5 million in the quarter.
Magellan boosted its full-year profit forecast to a range of $3.29 to $3.85 per share from a previous projection of $2.73 to $3.29 per share. Analysts forecast income of $3.15 per share.
In morning trading, Magellan stock surged $2.52, or 6.9 percent, to $39.25. The stock has ranged from $29.27 to $44.77 over the past year.