The 10-second takeaway
For the quarter ended March 31 (Q1), WebMD Health beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share increased. GAAP loss per share shrank.
Margins grew across the board.
WebMD Health reported revenue of $112.8 million. The four analysts polled by S&P Capital IQ expected net sales of $106.9 million on the same basis. GAAP reported sales were 5.4% higher than the prior-year quarter's $106.9 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 $0.17. The four earnings estimates compiled by S&P Capital IQ averaged -$0.02 per share. Non-GAAP EPS were $0.17 for Q1 against -$0.22 per share for the prior-year quarter. GAAP EPS were -$0.03 for Q1 compared to -$0.14 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 58.4%, 840 basis points better than the prior-year quarter. Operating margin was 4.0%, much better than the prior-year quarter. Net margin was -1.4%, 590 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $114.2 million. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $464.1 million. The average EPS estimate is $0.28.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 114 members out of 178 rating the stock outperform, and 64 members rating it underperform. Among 57 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 give WebMD Health a green thumbs-up, and 22 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 $20.00.
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