[ACCESSWIRE]
Upcoming AWS Coverage on Omnicell Post-Earnings Results
LONDON, UK / ACCESSWIRE / March 2, 2017 / Active Wall St. announces its post-earnings coverage on WebMD Health Corp. (NASDAQ: WBMD). The Company posted its financial results for the fourth quarter and full year 2016 on February 16, 2017. The health information website outperformed top- and bottom-line expectations and also announced that it is looking for strategic alternatives focused on maximizing shareholder value. Register with us now for your free membership at:
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One of Cerner's competitors within the Healthcare Information Services space, Omnicell, Inc. (NASDAQ: OMCL), reported on February 15, 2017, results for its fiscal year and fourth quarter ended December 31, 2016. AWS will be initiating a research report on Omnicell in the coming days.
Today, AWS is promoting its earnings coverage on WBMD; touching on OMCL. Get our free coverage by signing up to:
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Earnings Reviewed
For the three months ended December 31, 2016, WebMD's revenue was $207.5 million, up 8% compared to $192.1 million in the prior year's same period. The Company's revenue numbers surpassed analysts' consensus of $207.1 million. WebMD's advertising and sponsorship revenue totaled $171.0 million in the reported quarter compared to $158.3 million in the prior year's comparable period. Health services revenue, which WebMD previously reported as private portal services revenue, was $28.8 million compared to $27.2 million in Q4 2015. Information services revenue was $7.7 million compared to $6.6 million in the prior year's same period.
During Q4 2016, worldwide WebMD averaged approximately 8.3 million physician sessions per month on Medscape, an increase of approximately 14% over the prior year's same period. Medscape is a registration site and most of the Company's health professional members come directly to Medscape rather than through search. In the US, Medscape have approximately 675,000 registered US physicians that are active on an annual basis. They represent a substantial majority of the practicing physicians in the US. During the reported quarter, an average of approximately 404,000 US physicians were active on Medscape monthly. Additionally, outside the US, WebMD reach approximately 1.7 million active physicians annually.
For Q4 2016, WebMD's net income increased 32% to $36.2 million, or $0.73 per diluted share, compared to $27.5 million, or $0.60 per diluted share, in the prior year's corresponding period. The Company's earnings numbers exceeded Wall Street's expectation of $0.67 per share. WebMD's earnings before interest, taxes, non-cash, and other items (EBITDA) increased 16% to $78.1 million, or 38% of revenue, compared to $67.4 million, or 35% of revenue, in the prior year's comparable period.
For the year ended December 31, 2016, WebMD generated revenue of $705.0 million up 11% compared to $636.4 million in the prior year. Advertising and sponsorship revenue was $561.3 million compared to $499.0 million in the prior year; an increase of 12%. Health services revenue, which we previously reported as private portal services revenue, was $113.9 million compared to $110.4 million in the prior year; an increase of 3%. Information services revenue was $29.8 million compared to $26.9 million in the prior year; an increase of 11%.
For FY16, WebMD's net income increased 43% to $91.3 million, or $1.97 per diluted share, compared to $64.0 million, or $1.48 per diluted share, in the prior year. The Company's Adjusted EBITDA increased 19% to $230.6 million, or 33% of revenue, compared to $193.2 million, or 30% of revenue, in the prior year.
Balance Sheet Highlights
As of December 31, 2016, WebMD had approximately $991 million in investments and cash and cash equivalents; $1.06 billion in aggregate principal amount of convertible notes outstanding; and approximately 37.6 million shares of its common stock outstanding (including approximately 900 thousand unvested shares of restricted stock).
During Q4 2016, WebMD utilized $110 million of cash to purchase 2.0 million shares of its common stock in a tender offer. The Company also consumed $1.2 million of cash to purchase approximately 24 thousand shares of its common stock under its stock repurchase program. As of December 31, 2016, approximately $45.6 million remained available for repurchases under WebMD's stock repurchase program.
Traffic Highlights
Traffic to the WebMD Health Network during Q4 2016 averaged 179.5 million unique users per month, generating 3.63 billion page views for the quarter, representing decreases of 11% and 9% in users and page views, respectively, when compared to the prior year's same period.
Financial Guidance
For the full year ending December 31, 2017, WebMD expects revenue to be in the range of approximately $710 million to $730 million, up 1% to 4% from the prior year. The Company is forecasting net income to be approximately $89.0 million to $98.0 million, or $1.97 to $2.10 per diluted share, compared to $91.3 million, or $1.97 per diluted share, in FY16. Adjusted EBITDA, as a percentage of revenue, is estimated to be approximately 32.8% to 33.3% compared to 32.7% in the prior year.
For Q1 2017, WebMD expects revenue to be in the band of $151 million to $154 million, a decrease of 3% to 5% from the prior year's comparable period. Net income is anticipated to be approximately $9.8 million to $11.5 million, a decrease of approximately 27% to 38% from the prior year's same period, and adjusted EBITDA to be approximately $38.0 million to $40.0 million; a decrease of approximately 15% to 19% from the prior year's same period.
Exploration of Strategic Alternatives
In a separate release issued on the same day of its earnings release, WebMD announced that its Board of Directors, working together with its management team and legal and financial advisors, has commenced a process to explore and evaluate potential strategic alternatives focused on maximizing shareholder value. These alternatives could include, among other things, the sale of part or all of the Company, a merger with another party or other strategic transaction or continuing to execute on WebMD's business plan.
Stock Performance
At the closing bell, on Wednesday, March 01, 2017, WBMD's stock was slightly up 0.19%, ending the trading session at $52.00. A total volume of 1.09 million shares were traded at the end of the day, which was higher than the 3-month average volume of 899.39 thousand shares. In the last month, shares of the Company have advanced 5.16%. Moreover, the stock gained 4.90% since the start of the year. The Company's shares are trading at a P/E ratio of 27.72 and have a market cap of $2.02 billion as per its last closing price.
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