NASHVILLE, Tenn. (AP) ¿ Wellness-program provider Healthways Inc. said Thursday its third-quarter profit plunged on lower program revenue and higher costs, though the company boosted its full-year outlook.
The company earned $8.8 million, or 26 cents per share, down from profit of $15.6 million, or 45 cents per share, during the same period a year ago. Revenue slipped 3 percent to $181.6 million from $187.4 million.
Analysts polled by Thomson Reuters expected profit of 23 cents per share on revenue of $169.6 million.
The company said that since the beginning of the third quarter it has signed new, expanded or extended contracts with regional Blue Cross Blue Shield health plans, state governments and Fortune 100 employers.Looking ahead, Healthways increased its full-year profit and revenue outlook, citing performance in its domestic operations. It now expects adjusted profit between $1.01 and $1.05 per share, up from prior guidance between 97 cents and $1.05 per share. Revenue is forecast between $708 million and $717 million, up from prior guidance of $685 million to $700 million. Analysts, on average, expect profit of 98 cents per share on revenue of $696.6 million. Shares of Healthways fell 19 cents to close earlier at $16.15.