The 10-second takeaway
For the quarter ended June 30 (Q2), WebMD Health met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share increased. GAAP earnings per share increased.
Margins grew across the board.
WebMD Health booked revenue of $125.3 million. The five analysts polled by S&P Capital IQ wanted to see revenue of $124.4 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $112.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.27. The four earnings estimates compiled by S&P Capital IQ anticipated $0.21 per share. Non-GAAP EPS were $0.27 for Q2 compared to -$0.12 per share for the prior-year quarter. GAAP EPS were $0.05 for Q2 compared to -$0.11 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 58.8%, 690 basis points better than the prior-year quarter. Operating margin was 9.1%, much better than the prior-year quarter. Net margin was 2.1%, 710 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $128.0 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $508.0 million. The average EPS estimate is $0.79.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 117 members out of 180 rating the stock outperform, and 63 members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give WebMD Health a green thumbs-up, and 21 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 $24.86.
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