Top Healthcare Stocks
Healthcare stocks were solidly ahead Friday afternoon, with the
NYSE Healthcare Sector Index climbing about 1.2% and shares of
healthcare companies in the S&P 500 rising 1.6% as a group.
In company news, Cytokinetics (
) shares soared Friday after the biopharmaceutical company posted a
surprise Q4 profit as revenue jumped.
The company working to develop small-molecule therapeutics to
modulate muscle control recorded net income of $6.5 million during
the three months ended Dec. 31, 2013, reversing an $11.5 net loss
in the year-ago period. On a per-share basis, CYTK earned $0.21
compared with a $0.48 per share loss last year and easily trumping
the $0.19 per share loss analysts polled by Capital IQ were
Revenue jumped more than 11 times over year-ago levels to $24.3
million, topping the analyst consensus by $5.2 million, supported
by a $19 million surge in license and technology fees while revenue
from research and development activities more than doubled compared
with the same quarter last year.
For FY14, CYTK is expecting cash revenue in a range of $19
million to $21 million, not including around $10 million in
deferred revenue from last year into the current fiscal period. The
guidance also does not reflect potential milestone payments from
the company's partnered projects. Analysts, on average, are
expecting $40.4 million in total revenue for CYTK during the 12
months ending in December.
Shares were up more than 29% in recent afternoon trading,
earlier climbing nearly 34% to an intra-day high of $9.24 each -
recouping nearly all of their losses since Jan. 16 when shares
topped out a few days after the company said it was beginning to
recruit volunteer patients in Japan for additional testing of its
omecamtiv mecarbil drug candidate to prevent heart failure.
In other sector news,
(+) LCI, (+12.1%) Q2 earnings of $0.46 per share top Street view
by $0.11. Revenue advances 84.1% over year-ago levels to $67.33
mln, beating consensus estimates by $1.12 mln. Sees FY14 revs of
$275 mln to $285 mln, topping expectations by at least $26.36
(-) LH, (-2.7%) Adjusted Q4 net income rises $0.07 over year-ago
levels to $1.61 per share but still falls $0.04 short of analysts
forecasts. Revenue climbs 2.3% year over year to $1.43 bln, largely
matching Street projections looking for $1.4 bln. Guides FY14 EPS,
revenue in-line with Capital IQ consensus.
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