Healthways cuts annual revenue estimate, and shares plunge in extended trading

Stocks Associated Press

Wellness program provider Healthways cut its revenue forecast Thursday, sending its shares tumbling in after-hours trading.

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Healthways Inc. says it's getting less revenue than it expected from a contract with one health plan, and implementation and sales of a heart disease program and opportunities for a community wellness program have not met its expectations. The company is now forecasting $770 million to $785 million in annual revenue, down from its previous estimate of $800 million to $825 million.

FactSet says analysts expected $807.7 million in revenue, on average.

The news comes a month after former Healthways CEO Ben Leedle left the company for undisclosed reasons. He had been its CEO since September 2003.

Shares of Healthways Inc. sank $4.13, or 27 percent, to $11.40 in aftermarket trading. Shares of the Franklin, Tennessee-based company traded as high as $23.30 in February.