WebMD (WBMD) rallied big on Friday, up as high as 30 percent to over $26 in earlier trading. The strong performance came on the heels of the company’s earnings report, which showed that while fourth quarter revenues were down $18 million from the same period last year; they were ahead of consensus projections by $8.6 million.
While the company’s adjusted earnings-per-share income contracted nearly 75.8 percent in Q4, down to $0.08 from $0.33 the year earlier, this figure still well outperformed analyst estimates of $-0.04. WebMD’s projections for the coming year are similarly down from the previous one, but are nonetheless well above estimates: for Q1, the company projected revenue at $105 million, a loss of 6 percent from 2012, but well ahead of the forecasted $93.6 million.
For the full year, $430 to $455 million in revenue is expected, which is a loss of $0.13 to $0.45 per share on the year prior, but once again well ahead of the consensus $422 million (a loss of $0.44 per share).
CEO Cavan Redmond accompanied the good news by noting that Q4 saw the company “streamline operations and reduce costs”, and had a positive outlook for the year ahead: “We enter 2013 as a more nimble organization that is well positioned to meet the needs of our users and clients in a dynamic and demanding marketplace. We will build on our strengths in providing consumers and physicians with trusted content and valuable tools across a market leading multi-screen platform.”
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