WebMD: An Interesting Backdoor Specialty Pharma Growth Play
WebMD: Checkup Reveals Unhealthy Conditions
Darspal S Mann
Darspal S Mann
Wed, Mar. 30, 5:39 PM
Tue, Feb. 23, 5:30 PM
- WebMD's (NASDAQ:WBMD) Q4 beat has been accompanied by guidance for Q1 revenue of $154.5M-$157.5M (+8%-10% Y/Y) and 2016 revenue of $685M-$705M (+8%-11%), favorable at the midpoints to consensus estimates of $154.6M and $689.9M. In addition, 2016 EPS guidance of $1.75-$1.90 (compares with 2015 EPS of $1.48) is above a $1.66 consensus.
- Top-line performance/metrics: Ad/sponsorship revenue rose 25% Y/Y in Q4 to $$158.3M. Private portal services revenue fell 5% to $27.2M, and information services revenue 7% to $6.6M. Traffic rose 6% Y/Y to 3.97B page views; monthly unique users rose 7% to 201M.
- Financials: Cost controls lifted EPS: G&A spend fell by $600K Y/Y to $24.2M. Sales/marketing spend rose by $3.1M to $40.1M. $34M was spent on buybacks. WebMD ended 2015 with $641M in cash and $803M in convertible debt.
- WBMD +4% after hours to $54.00 The 52-week high is $58.25.
- WebMD's Q4 results, earnings release
Tue, Feb. 23, 4:05 PM
Thu, Feb. 11, 3:45 PM
- U.K. finance blogger Betaville reports hearing i-bank Moelis is "trying to broker a deal" between WebMD (WBMD +4.5%) and drugstore giant Walgreens Boots. Walgreen is said to have "already submitted an indicative offer."
- The FT reported in January WebMD is exploring a sale of all or part of its business. However, soon afterwards, the company stated it's "not currently in any negotiations to be acquired."
- Q4 results arrive on the afternoon of Feb. 23.
Mon, Feb. 1, 5:37 PM
Thu, Jan. 14, 10:59 AM
- In response to an overnight FT report stating the company is thinking of partly or fully selling itself, WebMD (NASDAQ:WBMD) states it's "not currently in any negotiations to be acquired."
- Shares have given back their early gains, and then some. They rose yesterday (in spite of a steep market selloff) after WebMD favorably revised its Q4 guidance and offered an initial 2016 sales outlook.
Thu, Jan. 14, 9:16 AM
Thu, Jan. 14, 2:51 AM
- WebMD (NASDAQ:WBMD), the U.S. online health information publisher, is exploring the possible sale of all or part of its business, FT reports.
- The company is said to be in talks with Walgreens Boots Alliance (NASDAQ:WBA) and UnitedHealth (NYSE:UNH), among other potential buyers.
- Since the start of the year WebMD shares have risen 10%, giving the company a market value of close to $2B.
- Update: Shares are up 6% premarket on increased volume.
Mon, Jan. 11, 11:19 AM
- SunTrust has downgraded WebMD (WBMD -3.1%) to Neutral. The firm previously upgraded to Buy on Aug. 3 (following WebMD's Q2 beat), when shares were at $43.58.
- SunTrust's downgrade comes four days after a downgrade to Hold from Stifel, and a month after a downgrade to Outperform from Top Pick from RBC.
Nov. 4, 2015, 2:35 PM
- WebMD (NASDAQ:WBMD) is near its highest levels since August after beating Q3 estimates and slightly upping its full-year net income guidance to $59M-$64M from $58M-$63.5M. Q4 revenue guidance of $181M-$191M (+11%-17% Y/Y) is in-line with a $187.5M consensus.
- Ad/sponsorship, private portal services, and information services revenue each rose Y/Y. Page views grew 8% to 4B, and average monthly unique users 11% to 206M. $89.9M in ad/sponsorship revenue came from biopharma and medical device firms, and $28.9M from OTC, CPG, and other firms.
- Buybacks continued: $23.1M was spent to repurchase 558K shares. Cost controls also lifted EPS: GAAP sales/marketing spend fell by $1M Y/Y to $32.9M, and G&A spend by $300K to $22.9M.
- Q3 results, PR
Nov. 4, 2015, 9:15 AM| Nov. 4, 2015, 9:15 AM | 2 Comments
Sep. 16, 2015, 4:48 PM
- As part of a change of coverage, Cowen's Charles Rhyee has upgraded WebMD (NASDAQ:WBMD) to Outperform, and upped his firm's target by $11 to $53.
- Rhyee: "WBMD remains well positioned in its core biopharma advertising business, but we think the more interesting story is its transformation into a broader healthcare service platform, which investors have yet to fully appreciate. As growth inflects in these areas, we think WBMD will see multiple expansion."
- Shares rallied today on volume of 565K shares, well above a 3-month daily average of 293K.
- Yesterday: WebMD ups buyback authorization to $40M
Aug. 3, 2015, 10:30 AM
- SunTrust has upgraded WebMD (NASDAQ:WBMD) to Buy 4 days after the company beat Q2 estimates and narrowed its full-year sales guidance to $625M-$35M (+8%-9% Y/Y) from $615M-$635M.
- WebMD's Q2 benefited from 18% and 19% Y/Y increases in monthly unique users and page views (to 212M and 4.12B, respectively), and improving demand from biopharma ad clients. Bipharma revenue is expected to be growing at an 11%-12% clip by year's end, better than the 8% growth seen during the last two years.
May 7, 2015, 3:36 PM
- Tech companies rallying after posting calendar Q1 reports include online textbook rental/learning services provider Chegg (CHGG +14.6%), salvage auction site Liquidity Services (LQDT +10.3%), optical component maker Emcore (EMKR +6.7%), and health site owner WebMD (WBMD +6.7%).
- Companies declining following earnings include cloud fleet management software vendor Fleetmatics (FLTX -6.8%), seismic hardware provider Ion Geophysical (IO -11.8%), and online stock photo marketplace Shutterstock (SSTK -4.7%).
- Chegg beat Q1 estimates on the back of an 89% Y/Y increase in digital revenue (now 39% of total revenue. Q2 revenue guidance of $61M-$65M and full-year guidance of $300M-$315M is respectively favorable to consensus estimates of $62.2M and $304.3M at the midpoints.
- Beaten-down Liquidity beat FQ2 estimates while reporting a 16.6% Y/Y drop in GMV to $189.4M. FQ3 guidance is for GMV of $175M-$200M and EPS of $0.05-$0.10 (below an $0.11 consensus).
- Emcore beat FQ2 estimates and is guiding for FQ3 broadband fiber division revenue of $19M-$21M, above an $18.5M consensus.
- WebMD beat Q1 estimates on the back of 21% Y/Y increases in monthly unique users (210M) and page views (4.25B). Q2 revenue guidance of $145M-$148M is below a $151.9M consensus, but full-year revenue guidance of $615M-$635M has been reiterated.
- Fleetmatics beat Q1 estimates, but also guided for Q2 revenue of $67.9M-$68.7M and EPS of $0.24-$0.26, below a consensus of $69.5M and $0.30. Full-year guidance is for revenue of $281M-$283M and EPS of $1.26-$1.30 vs. a consensus of $288.8M and $1.29.
- Ion, hit hard by declining oil exploration work, missed Q1 estimates while reporting 79%, 49%, and 12% Y/Y drops in Solutions, Systems, and Software revenue. The company expects "an increase in exploration spending over the back half of the year, albeit at lower than historical levels."
- Shutterstock beat Q1 estimates, but also forecast Q2 revenue of $104M-$106M (below a $106.1M consensus). 2015 revenue guidance of $436M-$444M is in-line with a $439.5M consensus.
- Previously covered: Alibaba, Qorvo, SunEdison, MeetMe, Priceline, Teradata, Activision, Gogo, Atmel, Varonis, Zynga
Apr. 8, 2015, 3:48 PM| Apr. 8, 2015, 3:48 PM | 1 Comment
Apr. 8, 2015, 9:23 AM
- Believing mobile monetization remains a challenge, Goldman has downgraded WebMD (NASDAQ:WBMD) to Sell, and set a $40 target.
- Shares had risen 14% since the online health info provider posted a Q4 beat on the back of healthy traffic growth on Feb. 24. They've fallen to $45.50 premarket.
- Update (1:20PM ET): Goldman has backtracked on the downgrade, stating its calculations were off. WebMD is now up slightly on the day.
WebMD Health Corp. provides health information services to consumers, physicians and other healthcare professionals, employers and health plans through its public and private online portals, mobile platforms and health-focused publications. Its online healthcare information, decision-support... More
Industry: Internet Information Providers
Country: United States
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