Healtheon (Nasdaq; HLTH), which offers an online information and transaction platform for the health-care industry, reported a worse-than-expected loss when it announced its second-quarter earnings on Thursday. However, investors didn’t seem to mind.
Shares of Healtheon climbed 4-1/16 to 34-1/8 on Thursday after reporting a loss of $17.6 million, or 25 cents per share. Analysts had expected a loss of 22 cents. What boosted Healtheon’s stock was the fact that the company’s revenues of $22.7 million were a 108 percent increase from the $10.8 million reported in the second quarter of 1998. In addition, Healtheon’s revenue of $40.3 million for the first six months of this year is a 95 percent increase over the $20.7 million in revenue for the same time last year.
Investors may be gobbling up the stock simply because it looks like its on the clearance aisle right now. After all, Healtheon is well off its high of 126-3/16, which was hit in May.