The 10-second takeaway
For the quarter ended June 30 (Q2), WebMD Health met expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue shrank significantly, and GAAP earnings per share shrank to a loss.
Margins dropped across the board.
WebMD Health notched revenue of $112.7 million. The four analysts polled by S&P Capital IQ hoped for a top line of $112.1 million on the same basis. GAAP reported sales were 20% lower than the prior-year quarter's $141.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.12. The two earnings estimates compiled by S&P Capital IQ predicted -$0.12 per share. GAAP EPS were -$0.11 for Q2 versus $0.35 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 51.9%, 1,190 basis points worse than the prior-year quarter. Operating margin was -1.6%, 2,230 basis points worse than the prior-year quarter. Net margin was -5.0%, 2,030 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $115.1 million. On the bottom line, the average EPS estimate is -$0.11.
Next year's average estimate for revenue is $461.9 million. The average EPS estimate is -$0.37.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 111 members out of 167 rating the stock outperform, and 56 members rating it underperform. Among 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 give WebMD Health a green thumbs-up, and 19 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on WebMD Health is hold, with an average price target of $23.50.
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