After the market closed on Tuesday, WebMD posted earnings that topped analyst estimates and sent shares climbing in the post market session. WBMD posted adjusted earnings of 60 cents per share on 192.1 million in revenue while analysts were looking for 57 cents per share. Profit came in at $27.5 million versus the same period last year of $16.3 million, a 68% increase. The online-health publisher also announced first quarter guidance of $154.5 million to $157.5 million versus analyst estimates of $155 million.
Looking at the chart you will see that WBMD took off to premarket highs of $55.00 after closing the day at $51.93 and gapped up the next morning to $54.74. Shares initially sold off to lows of $52.91 when the market opened but were quick to rebound and surge the rest of day where it closed at $56.89 after reaching highs of $57.32, a 9.5% jump from the previous days close. WBMD has been great for investors and looks to continue the trend as all time highs are within reach. Shares are well above all moving averages but they are coming in on a big resistance levels at $58.25 with support coming in at $56 and the $53,50 levels. Currently analysts have an average price target of $56.57.
CEO Comments
“The fourth quarter results released today are consistent with the preliminary views we shared in mid-January. We finished the quarter and full year just above the high end of our financial guidance. In the fourth quarter, we delivered 18% revenue growth accompanied by a 40% increase in adjusted EBITDA, compared to the prior year period. For the full year we delivered 10% revenue growth accompanied by a 22% increase in adjusted EBITDA over the prior year. In 2015 advertising and sponsorship revenue grew 10% to $499 million. Bio-pharma represented 74% of advertising revenue and grew approximately 13% in 2015 compared to 8% growth in 2014. The bio-pharma environment remains healthy and we expect to further accelerate revenue growth in this important customer segment in 2016.” (SeekingAlpha)
WBMD Profile
WebMD Health Corp. provides health information services to consumers, physicians and other healthcare professionals, employers and health plans through its public and private online portals, mobile platforms and health-focused publications. Its online healthcare information, decision-support applications and communications services enable consumers to obtain detailed information on a particular disease or condition, to locate physicians, to store individual healthcare information, to assess their personal health status, to receive periodic e-newsletters and alerts on topics of individual interest, and to participate in online communities with peers and experts. The company also enables physicians and other healthcare professionals to access clinical reference sources, to stay abreast of the latest clinical information, to learn about new treatment options, to earn continuing medical education and continuing education credit and to communicate with peers. It enables employers and health plans to provide their employees and plan members with access to personalized health and benefit information and decision-support technology that helps them make more informed benefit, provider and treatment choices. The company’s services include WebMD consumer network, WebMD professional network, WebMD private portal and WebMD magazine. WebMD Health was founded on May 3, 2005 and is headquartered in New York, NY. (MarketWatch)
