Magellan Health Services Inc. reported a more-than-expected quarterly profit, backed by strong Medicaid administration revenue.

It reported its fourth-quarter net income to be $43.7 million, or $1.25 a share, compared to $23.6 million, or 61 cents a share in the year-ago period.

Also, the revenue for the company reportedly jumped 9 percent to $718.9 million.

The company had acquired First Health Services, a unit of insurer Coventry Health Care Inc, in 2009, outlining fourth-quarter Medicaid administration revenue of $38.4 million.

However, analysts were speculating the company to earn $1.04 a share, on revenue of $699.7 million, according to Thomson Reuters I/B/E/S.

The company, which provides of a network of doctors and hospitals to its members, succeeded to stick to its 2010 earnings forecast of $2.73 to $3.29 a share, on revenue of $3.0 billion to $3.2 billion.

However, analysts were predicting earnings of $3.05 a share, on revenue of $3.05 billion, for the year.

Shares of the company registered a closing price of $39.51 Thursday on Nasdaq.