The health information company said Wednesday it anticipates acquiring 5.77 million common shares at $26 a share in a modified "Dutch auction" tender offer for $150 million.
"Expectations for Q1 are particularly weak, with flow-through suggesting management expectations for improved second half, albeit against far easier comps," Wells Fargo analysts wrote in a report on Feb. 24. "Our revised Q1 2012 revenue estimate falls $13MM or 11%, to $105MM, versus 'at least $105MM' guide. For FY2012, our caution leads us to model to low end of guidance for revenue, EBITDA and adjusted EPS, where we forecast $517m, $114m, and $0.05 (revised from $0.39)."Shares of WebMD hit a 52-week low Wednesday of $23.31. The stock's 52-week high of $58.55 was set on May 2. WebMD has an estimated price-to-earnings ratio for next year of 28.44 times; the average for publishing companies is 22.1. Nine of the 11 analysts who cover WebMD rated it hold and two analysts gave the stock a sell rating. TheStreet Ratings gives WebMD a C grade and hold rating. The stock has fallen 37.6% year to date.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV