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WebMD Shares Surge on Q4 Revenue Beat, Outlook (WBMD)

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Shares of WebMD Health Corp. (NASDAQ: WBMD) have risen sharply in trading today after the New York City-based company reported better than expected fourth-quarter revenue. The company also gave a bullish outlook for 2013.

Key Points

  • WebMD’s revenue for the quarter beat estimates
  • The company’s revenue outlook for 2013 is well above the consensus forecast

Cavan M. Redmond, CEO of WebMD, said that during the fourth quarter, the company took actions to streamline operations and reduce costs. Redmond further said that the company enters 2013 as a more nimble organization that is well positioned to meet the needs of its users and clients in a dynamic and demanding marketplace. Redmond added that the company will build on its strengths in providing consumers and physicians with trusted content and valuable tools across a market leading multi-screen platform.

For 2013, WebMD expects revenue to be between $430 million and $455 million, well above the consensus forecast of $416.9 million. The company expects net loss from continuing operations of $0.45 per share to $0.13 per share in 2013. Revenue for the first quarter of 2013 is expected to be over $105 million, compared to Street estimates of $92.8 million.

For the fourth quarter ended December 31, 2012, WebMD reported revenue of $132.7 million, down from $150.7 million reported for the same period in the previous year. The company’s revenue for the quarter beat Street estimates of $124.2 million. Adjusted EBITDA for the quarter was $30 million, down from $54.6 million reported for the same period in the previous year. The company reported a net loss of $6.1 million, or $0.12 per share for the fourth quarter of 2012.

At last check, WBMD shares were trading 25.21% higher at $20.41 on above average volume of 2.79 million.

About WebMD Health Corp.

WebMD Health Corp. is a provider of health information services.

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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