WebMD Prescribes Higher Revenue and Profits

For the second quarter, WebMD now expects revenues of $124 million to $125 million, up 10% from previous guidance of $115 million. Adjusted EBITDA guidance was raised to $29 million, and net income is expected to reach $0.05 per share. The current consensus estimate calls for break-even earnings per share (EPS) in the second quarter.

For the full year, WebMD now estimates revenues at $485 million to $505 million, up from previous guidance of $450 million to $470 million. The company’s estimate for adjusted EBITDA has been lifted from a range of $75 million to $88 million to a new range of $100 million to $110 million. Net income, which actually had been forecast as a net loss, is now expected to total $3 million to $11 million. Based on 49.1 million shares outstanding, that works out to EPS of around $0.06 to $0.22. The consensus estimate called for a net loss of $0.02 per share for the year.

Over the past year, WebMD’s stock has risen by 32% to around $30 a share. Unfortunately, at its peak the share price was near $60 a share.

Today’s announcement has lifted the stock by 15% in premarket trading, to $31.00 in a 52-week range of $13.13 to $31.63. A new yearly high is certainly possible when trading begins.