Healthways Shares Gain 10% on Q2 Beat; Cuts FY15 Outlook In Line with Expectations

Healthways (HWAY) rose over 10% on Friday after the company posted better-than-expected financial results for Q2 and lowered its guidance for fiscal 2015 in line with Street estimates. HWAY is trading in the lower half of the 52-week range of $11.37 - $23.30.The provider of total population health management solutions reported late Thursday Q2 net income of $0.4 million, or $0.01 per diluted share, compared with the prior-year period's net loss of $0.5 million, or $0.01 per share. Adjusted net earnings were $0.11 per share, ex one-time items, versus $0.01 per share in the same quarter the previous year. The Capital IQ analyst estimate is for $0.07 loss per share. Revenue was $198.1 million, up 9.7% from $180.6 million in the same quarter last year. Analysts were expecting revenue of $187.7 million.The company provided details to its new guidance for fiscal 2015, which it revised downward back in June, reflecting its performance through the first half of 2015. It now expects fiscal 2015 EPS of $0.07 - $0.15, versus the previous guidance of $0.35 - $0.47 EPS; the Street view is for EPS of $0.09. For revenue, Healthways now sees $770 million - $785 million, down from the prior guidance range of $800 million - $825 million. Street forecasts are for revenue of $776 million.