Avon's Magellan Health Services more than doubled its third-quarter net income from its health care outsourcing operations but a recent federal tax reversal gave a one-time boost to its bottom-line.
For three months ended Sept. 30, Magellan netted $66.3 million, or $2.36 a diluted share, up from $31.3 million, or $1.03 a share, netted the same period a year ago.
Finance chief Jonathan N. Rubin said the quarterly net income benefitted from the impact of a one-time reversal of tax contingencies, adding about $1.24 to per-share results.
Third-quarter revenue rose 16.2 percent to $798.4 million vs. $686.8 million last year.
Chairman and CEO Rene Lerer, M.D. said Magellan's strong quarterly performance has positioned it finish the year on a high note.
Lerer said Magellan, as a result of its lower effective tax rate, now expects its net income to be in the range of $135 million to $155 million, with diluted earnings in a range of $4.83 to $5.55 a share before the impact of any future share repurchases.