Healthways shares fall after disappointing forecast

Source: Healthcare Digital

Date :8/26/2008 3:56:18 AM

Healthways Inc dropped the most in six months on the Nasdaq yesterday, August 25, after its earnings forecast missed analysts' estimates by as much as 13 cents a share.

The shares fell by US$5.54, or 22 percent, to US$19.73 in composite trading at 4pm (EDT).

The Nashville, Tennessee-based company, a provider of disease-management services, said that earnings for the quarter ending November 30 will range from 34 cents to 37 cents a share.

The average forecast in a Bloomberg survey of eight analysts was for 47 cents a share.

Full year

For fiscal 2008, Healthways said it anticipates revenues of US$$720 million to US$740 million, which would represent an increase of 17 percent to 20 percent from 2007.

It forecasts earnings per diluted share in the range of US$1.50 to US$1.55, an increase of 23 percent to 27 percent from fiscal 2007.

The company also switched to a calendar year from a fiscal year.