Healthcare Stocks Mixed; Healthways Shares Sickly On Q3 Miss, Q4 Guidance; But eHealth Thriving


Top Healthcare Stocks

JNJ -0.5%

PFE -0.03%, has turned negative

ABT -0.43%

MRK -0.4%

AMGN -0.4%

Healthcare stocks are mixed with NYSE Healthcare Sector index climbing 0.1% while shares of healthcare companies in the S&P 500 are down a combined 0.2%.

In company news, Healthways ( HWAY ) is down over 28% at $11.86 a share, sinking as low as $11.25 today after the specialized healthcare serives provider last night reported Q3 net income and revenue that missed analyst expectations and issued downbeat guidance for Q4 and FY14.

The company earned $0.05 per share in its latest quarter, down from a $0.15 per share gain during the same quarter last year and missing the Capital IQ consensus by $0.07 per share. Revenue was little changed from year-ago levels at $166.6 million, also trailing expectations by around $15.4 million.

HWAY also trimmed its Q4 EPS and sales outlooks to account for a slower-than-expected ramping up of certain contract revenues. It now expects earnings of between $0.00 to $0.06 per share during the quarter ending in December with revenue coming in between $171 million to $181 million. The Street is looking for a $0.24 per share profit in Q4 on $713.02 million in revenue, according to Capital IQ.

It also sees FY14 revenue in a range of $725 million to $760 million, which would lag analyst expectations by at least $40.67 million.

In other sector news,

(+) EHTH, (+12.9%, hit fresh 52 week highs) Q3 earnings of $0.08 per share, ex items, match Capital IQ consensus. Revenue rises 11.8% year over year to $42 mln, beating estimates by $1.54 mln. Reaffirms in-line FY13 EPS guidance of $0.61 to $ 0.71 per share on $168 mln to $174 mln in sales.

(-) RMD, (-12.2%) Fiscal Q1 sales of $357.7 mln trails Street view by $15.3 mln. Earns $0.56 per share, including one-time items, compared to analyst consensus looking for $0.58 profit, which typically excludes items.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

Referenced Stocks: HWAY

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