Magellan Health cuts FY18 adj. EPS view to $5.18-$5.96 from $5.90-$6.68

FY18 consensus $6.24.  Cuts FY18 revenue view to $7.3B-$7.5B from $7.5B-$7.8B, consensus $7.59B. “We are updating our guidance ranges to reflect the following: the impact of lost contracts and delays in closing on pipeline opportunities in our pharmacy specialty carve-out business; the impact of our continued cost of care pressure in Virginia; and in New York, the impact of lower than expected membership growth as well as lower than anticipated capitation rates, partially offset by improvements in care management,” said Jonathan N. Rubin, chief financial officer of Magellan Health. “Compared to the first half of 2018, we expect the segment profit to sequentially increase for the remainder of the year due to the following three factors: earnings seasonality in both our healthcare and pharmacy businesses, margin expansion due to initiatives in our healthcare segment, and new business and same store growth. While we expect these items to have a favorable impact in the third quarter, we anticipate a greater impact in the fourth quarter.”
https://bit.ly/2NRi0Ki