WebMD Health Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of online health company WebMD Health (NAS: WBMD) jumped 10% today after the company released earnings.
So what: Revenue increased 15% to $141.4 million and earnings increased to $21.6 million, or $0.36 per share. Without a one-time settlement and an investment gain, earnings would have been $0.22, below the $0.28 analysts had expected.
Now what: The move is a bit curious today, as revenue was only in line with estimates and earnings were slightly worse than expected. We may be making up for what WebMD shares lost yesterday and in July, but I still can't get too pumped up about the move. Plus, two lawsuits were filed against the company for providing "materially false and misleading statements" that affected the stock price.
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At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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