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

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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.



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This article appears in: Investing , Commodities

Referenced Stocks: HWAY

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