Earnings wrap: Healthways, Tractor Supply

Wellness services provider sees margins growing; farm and ranch retailer hits lowered guidance

Healthways reported a second-quarter net loss of $0.5 million, or 1 cent per share, compared with a loss of $1.1 million from the same period of the year prior. The population health management company posted a revenue of $180 million, an 11 percent increase from Q2 2013.

The company signed 19 contracts in the quarter, including a 10-year renewal of its Silver Sneakers Fitness program with Highmark. President and CEO Ben Leedle said in a release that the company also had a "substantial and active pipeline" of potential contracts in domestic and international markets.

"Our financial results for the second quarter were consistent with our expectations," Leedle said. "We have now generated four consecutive quarters of sequential-quarter revenue growth."

Looking ahead to the second half of the year, Leedle said his team expects margins to rise thanks in part to performance-based fees. Shares of the company (Ticker: HWAY) fell about 1 percent Wednesday to $15.82. So far this year, they're up about 3 percent.

 
Farm and ranch products retailer Tractor Supply said it earned $133 million in the second quarter, an increase of 8 percent from a year ago. Per diluted share, profits came in at 95 cents, in line with the lowered guidance the company gave earlier this month.

Revenues at Brentwood-based Tractor Supply climbed to $1.58 billion from $1.46 billion in the second quarter of 2013. Same-store sales rose 1.9 percent.

"Despite some of the early headwinds, we successfully delivered positive comparable store sales in each month of the quarter while minimizing the impact to merchandise margins," said President and CEO Greg Sandfort. "We ended the quarter in great shape from an inventory position and a go-forward merchandise perspective, and feel good about our ability to continue driving sales and earnings growth in the back half of the year."

Shares of Tractor Supply (Ticker: TSCO) fell slightly after hours Wednesday to $60.88. Year to date, they're down about 20 percent.