The layout of Healthways’ second-quarter earnings release is clearly aimed at assuaging whatever fears may be lingering after the company’s recent woes.
Profits came in at 33 cents per share, which CEO Ben Leedle is quick to point out is right in line with projections made in the disease manager's first-quarter earnings release. And while it also in line with the consensus estimate from analysts, it is down somewhat from previous expectations.
And after a quick look at revenue, the company launches into all of new contracts and extensions it has secured in the last three months, noting the extension of a Cigna deal along with health support programs with Abbott Laboratories and Caterpillar.
The reassurance is not surprising after the beating the company’s stock (Ticke: HWAY) has taken since the beginning of this year, when more fickle investors began running for cover following less-than-stellar news from a CMS pilot program and rumors of a lost contract in Minnesota.
Many market watchers, however, remain guardedly bullish about the stock. In a piece posted yesterday, the Motley Fool noted that of 16 analysts polled, “Ten of them say to hold your shares, while five find the company in the pink of health at current prices and rate it a buy. Only one says Healthways is ready to give up the ghost and has rated it a sell.”
Today’s revenue figure – an increase of 12 percent to $179 million – fell shy of the $182.6 million mark that analysts had hoped for.
Healthways' stock climbed over the course of the day, closing up 4.1 percent at $32. For the company's full release, click here.
Healthways Inc. |
Disease management |
Health Care |
Market-movers
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