Everyday Health (EVDY) Says Sales Execution Problems Affected Consumer Segment; Leerink Partners Reiterates Outperform
Leerink Partners maintained an Outperform rating on Everyday Health (NYSE: EVDY), and cut the price target to $15.00 (from $27.00), following the company's 3Q earnings report. Everyday Health reported 3Q15 revenue of $54.3m, $2.5m or 4% below Street expectations. Management lowered guidance for 2015 by 5% from $240m to $228m at the midpoint. Diluted non-GAAP EPS came in at $0.07, a penny below Street consensus.
Analyst Steven Wardell commented, "After the market close on Tuesday (11/10), Everyday Health missed Street estimates by $2.5m on the top line and guided down by $12m for 4Q, citing sales execution problems affecting its Consumer segment. While disappointing, the company also pointed to a high-20% growth rate in its Professional line of business, supporting our investment thesis. We lower our estimates for 4Q15, and for 2016 we conservatively lower our Consumer sector growth to flat, resulting in overall top-line growth of 12%, and reduce our Price Target to $15 (from $27)."
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Shares of Everyday Health closed at $10.05 yesterday.