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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.