Magellan Health Services Inc., a health care outsourcing company, released its fourth quarter and FY 2009 results today. The net profit in the fourth quarter grew by 85%. The company said that the increased profit in the fourth quarter was because of the increased revenue especially from Medicaid. The net income in the fourth quarter beats the market expectations completely.

Magellan reported the net income of $43.8 million or $1.25 per share in the fourth quarter, increasing by 85% while in the same period last year the company posted a net income of $25.6 million or $0.61 per share. The analysts estimated the net income of $1.04 per share for the period. Total revenue in the fourth quarter was reported $718.9 million, increasing by 9% comparing to the revenue of $661.8 million posted in the fourth quarter of FY 2008.

For the full year 2009, the company reported a net income of $106.7 million or $3.01 per share, while in the previous fiscal the net income was posted $86.2 million or $2.16 per share. The revenue in the year rose to $2.64 billion from $2.63 billion in 2008.

Magellan also provided its guidance for 2010. The company said that it is expecting revenue of between $3 billion and $3.2 billion and earnings per shares in the range of $2.73 to $3.29.