Goldman Sachs Reviews Q2 Earnings From WebMD

Goldman Sachs maintained its Neutral rating on WebMD Health Corp. WBMD despite the company's better-than-expected quarterly results.

The company's second quarter EPS of $0.39 topped estimates by $0.01 and revenue of $167.6 also came in above Street consensus of $165 million. Strong growth at advertising, Health Services and Info Services drove the quarterly beat.

For the third quarter, WebMD sees revenue of $168-$171 million (vs. Est. $168 million). Management reiterated full year 2016 revenue guidance of $695-$708 million, compared to consensus of $703 million, and EPS view of $1.78-$1.90 versus estimate of $1.84.

"While the outlook for pharma spending remains strong, given the risks associated with the transition to mobile and traffic from Google we remain Neutral at this valuation," analyst Heath Terry wrote in a note.

In the second quarter, WebMD had 199 million monthly unique visitors (down 6 percent year-over-year) which generated 4.23 billion page views (up 2.7 percent year-over-year). Forty-one percent of page views came from U.S. smartphones, while 32 percent of page views came internationally.

Terry also raised his price target by $1 to $62.

At time of writing, shares of WebMD fell 9.35 percent to $53.88.