Shares fell 12% on the news that WebMD lowered it's revenue forecast for 2008 due to a worsening economy and the resulting lower spending on advertising. The projected revenue for 2008 was revised down from $36.5 million to $46 million on revenue of $395 million to $415 million to $29.5 million and $37.5 million on revenue of $380 million to $395 million.
WebMD lowered its Q3 revenue outlook as the sales of advertising and sponsorship programs are taking longer than expected to close. The company expects Q3 revenue of $86-87 million, compared to previously announced $89-94 million. It expects the sales to be higher in 2008. However, the company increased its profit estimate for Q3, with expected net income to be in range of $10.8-11.7 million, compared to prior estimate of $8.2-10.6 million.
