Healthways Soars on Guidance

The disease manager raises it.
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Healthways (HWAY) surged 12% after the disease management company sharply raised 2007 guidance.

The Nashville, Tenn., company made $14 million, or 38 cents a share, for the fourth quarter ended Aug. 31, up from the year-ago $8.3 million, or 23 cents a share. Revenue rose to $114.9 million from $87.6 million a year earlier.

"We are very pleased with the strong performance of our core commercial business for the fourth quarter which was above expectations and which drove substantial profitable growth for the entire company for the quarter," CEO Ben Leedle said. "We attribute this performance to increasing business with existing customers, the addition of new customers, the launch of new programs and services and the resulting increased operating leverage. The results for our core commercial business for the fourth quarter were consistent with its performance throughout fiscal 2006, a year in which we also achieved tangible progress toward our goal of fully integrated WholeHealth solutions for entire populations."

The company said it expects to make $1.44 to $1.61 a share for fiscal 2007 on revenue of around $684 million. Analysts were looking for $1.48 a share on revenue of $512 million.

Shares rose $4.45 to $43.76.