Healthways reports lower 3Q profit, cuts outlook
NEWS: Shares of Healthways Inc. sank after the wellness program administrator said its profit fell in the third quarter, prompting it to cut its outlook for the year.
DETAILS: Healthways, based in Nashville, Tenn., provides wellness and disease prevention services for patients via health plans, hospitals, government programs and others. The company cited slower-than-expected revenue growth for its more downbeat outlook.
NUMBERS: The company earned $1.8 million, or 5 cents per share, during the period. That's compared with a $5 million, or 15 cents per share, in the year-ago period.
Analysts on average expected a profit of 12 cents per share, according to FactSet.
Revenue was relatively flat at $166.6 million, short of the $182.6 million analysts expected.
FUTURE: Healthways now expects revenue to be in the range of $665 million to $675 million, down from its previous guidance of $710 million to $750 million when reporting its second-quarter results.
It expects a net loss of 4 cents to 10 cents per share. It previously forecast net income 18 cents to 28 cents per share.
Analysts expect a 2013 profit of 21 cents per share and revenue of $715.7 million.
The company's initial revenue guidance for 2014 ranging between $725 million and $760 million also fell short of the average analyst estimate of $799.1 million.
STOCK: Its stock was down 24 percent to $12.50 in late trading. As of Thursday's regular close, shares had rallied 55 percent in the year to date.