Healthways (HWAY) lost ground Wednesday after the company, which provides health and care support programs, cut its fourth-quarter and yearly guidance late Tuesday.
Shares were recently down $2.40, or 5.7%, to $40.02.
Citing lower-than-expected revenue from medicare health support pilots, the Nashville, Tenn.-based company said it is looking to post earnings of 36 cents to 38 cents a share, down from an earlier forecast of 53 cents to 56 cents a share. Wall Street was looking for earnings of 54 cents a share. Healthways forecast revenue between $113 million and $115 million, while analysts are calling for $131.3 million.
For the full year, Healthways said it expected earnings between $1 and $1.02 a share on $410 million to $412 million in revenue, down from an earlier forecast of $1.17 to $1.20 a share on $415 million to $435 million in revenue. Analysts are looking for earnings of $1.19 a share on $428.4 million in revenue. Healthways is slated to report fourth-quarter results on Oct. 17.