WebMD Health Earnings: Here’s Why Investors are Excited Now

WebMD Health Corp. (NASDAQ:WBMD) 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. Shares are up 7.80%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

WebMD Health Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.03 in the quarter versus EPS of $-0.14 in the year-earlier quarter.

Revenue: Decreased 33.61% to $71 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: WebMD Health Corp. reported adjusted EPS loss of $0.03 per share. By that measure, the company beat the mean analyst estimate of $-0.15. It missed the average revenue estimate of $106.64 million.

Quoting Management: Martin J. Wygod, Chairman of WebMD, said, “The change announced today will best position us to build on the momentum that our senior management team has created to date. Under David’s leadership, we will accelerate the development and implementation of strategies to diversify our revenue base and capture the opportunities arising from the rapidly changing healthcare landscape.” Mr. Wygod added, “On behalf of the Board of Directors, we wish Cavan well in his future endeavors.”

Key Stats (on next page)…

Revenue decreased 46.51% from $132.74 million in the previous quarter. EPS decreased to $-0.03 in the quarter versus EPS of $-0.08 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 loss of $0.13 to a loss $0.09. For the current year, the average estimate has moved up from a loss of $0.44 to a loss of $0.3 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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