Healthways, Inc. (NASDAQ:HWAY) Reports 4Q Results below Analysts’ Estimate

Healthways, Inc. (NASDAQ:HWAY) reported fourth quarter results on Tuesday evening, after the markets closed, with an increase of 108% year over year in net income. The company reported fourth fiscal quarter net earnings of $15.6 million or 45 cents a share, an increase of 108% from $7.5 million or 22 cents a share, for the same period a year ago. In December, the company announced final settlement with CMS, which contributed $22.3 million in revenue during the quarter, or roughly $0.20 per share.   Excluding these items, Healthways reported EPS of $0.25, just below the street estimate of 26 cents a share. Operating earnings were up roughly 30% annually to $29.3 million, but much of the increase was again driven by the CMS settlement. Sales during the quarter were $195.3 million, up 11.47% from last year’s sales of $175.2 million and missing consensus estimates of $197.1 million by $1.8 million. Margins were solid in the quarter, with gross margin registering at 28.8%, increasing 290 basis points year-over-year. Adjusted EBITDA margins came in at 17.2%, improving 77 basis points year-over-year. Cash flows were also solid for the quarter, with operating cash flow of $32 million, more than 200% of net income and free cash flow at $23 million, roughly 150% of net income. The company announced that for fiscal 2011, it expects revenue to be in the range of $672-$710 million and net income per diluted share (EPS) in a range of $0.90 to $1.08. Embedded in the earnings are contributions from the Domestic segment of $0.94-$1.04 per share and from the International segment of ($0.04)-$0.04 per share.  Analysts on an average were expecting the Company to report revenue of $677 million and EPS of $1.04 for fiscal 2011. The Stock gained $1.07 or 8.39% and closed at $13.82 after opening at $13.32 and trading in the range of $13.18-$14.22 on volume of 896,357 shares. The stock has 52 week trading range of $9.50-$17.83. The market capitalization of the stock stands at $474.18 million with P/E of 12.28 and beta of 1.43. Healthways, Inc. provides solutions to help people to maintain or improve their health. The Company's health, prevention and well-being services are made available to consumers via phone, direct mail, the Internet, face-to-face consultations and venue-based interactions. Disclaimer: The assembled information distributed by epicstockpicks.com is for information purposes only, and is neither a solicitation to buy nor an offer to sell securities. Epicstockpicks.com does expect that investors will buy and sell securities based on information assembled and presented herein. EpicStockPicks.com will not be responsible in any way for or accept any liability for any losses arising from an investor's reliance on or use of information obtained from our website or emails. PLEASE always do your own due diligence, and consult your financial advisor.
Negocioenlinea
tdp2664
Epic Stock Picks