Healthways Earnings: Everything You Must Know Now

Healthways Inc. (NASDAQ:HWAY) had a loss and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Healthways Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.03 in the quarter versus EPS of $0.15 in the year-earlier quarter.

Revenue: Decreased 4.66% to $162.27 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Healthways Inc. reported adjusted EPS loss of $0.03 per share. By that measure, the company beat the mean analyst estimate of $-0.05. It missed the average revenue estimate of $170.3 million.

Quoting Management: “We are pleased with Healthways’ second-quarter progress toward achieving our business goals for 2013,” said Ben R. Leedle, Jr., president and chief executive officer of Healthways, Inc. “As expected, our comparable second-quarter results reflected a negative impact from the termination of the Cigna contract and one other health plan contract (the “two terminated contracts”) at the end of 2012. Excluding the two terminated contracts from both quarters, our revenues for the second quarter of 2013 increased $16.8 million, or 11.7%, compared to the second quarter of 2012.”

Key Stats (on next page)…

Revenue decreased 2.58% from $166.56 million in the previous quarter. EPS increased to $-0.03 in the quarter versus EPS of $-0.12 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.16 to a profit $0.17. For the current year, the average estimate has moved up from a profit of $0.28 to a profit of $0.29 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)