Healthways craters 20% to new 52-week low on disappointing Q1 guidance, analyst downgrade
Healthways Inc. (Nasdaq:HWAY) saw its stock tumble more than 20% to a new 52-week low today after announcing guidance for its fiscal first quarter that fell well below analysts’ expectations.
The Nashville Tenn.-based disease management company said before the bell this morning that it expects to earn between $0.34 and $0.37 for the quarter ended Nov. 30.
Analysts polled by Thomson First Call were expecting earnings per share of $0.46.
The company said the guidance reflects a decline in revenue due to the impact of certain contract renegotiations, reduced revenues associated with the winding down of a previously discussed contract terminating at the end of calendar 2008 and the full-quarter effect of small contract losses due to health plan consolidation.
Jefferies & Co. downgraded the stock to “underperform” from “buy” on the news.
By mid-day, Healthways is at $20.03, down $5.24 from Friday’s close after having traded as low as $18.54 earlier in the day. Previously, the stock had traded as low as $23.25 and as high as $71.22 during the past 52 weeks.
For detailed price information and news stories on Healthways, click HWAY.
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Contributing author Mary Ann Azevedo has more than 13 years of writing and editing experience that includes coverage of a broad range of companies.
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