Health Care Sector Update for 08/25/2015: KANG,ADAT,VWR
Top Health Care Stocks
Health care stocks were giving into modest profit-taking this afternoon, backing off from their earlier highs. In recent trading, the NYSE Health Care Sector Index was rising almost 2.0% and shares of health care companies in the S&P 500 were up nearly 2.3% as a group.
In company news, iKang Healthcare Group ( KANG ) rose Tuesday after the Chinese preventive health care company reported a fivefold increase in its fiscal Q1 earnings compared with year-ago levels.
Net income during the three months ended June 30 rose to $10.7 million, or $0.15 per American depository share, improving on a $1.9 million profit during the same quarter last year.
Excluding one-time items, non-GAAP net income rose to $0.16 per ADS, up from $0.13 per ADS last year. No analyst estimates were available for comparison.
Revenue jumped 43.4% year over year to $86.3 million.
Looking forward to the 12 months ending next March, the company reaffirmed its revenue outlook expecting 32% to 34% growth over FY15 levels to a range of $383 million to $390 million, matching the single analyst estimate solicited by Capital IQ expecting $386.8 million in FY16 revenue.
KANG ADS were up nearly 5% at $14.63 apiece, earlier topping out at $15.32 per ADS. Through yesterday's close, the stock has declined just under 32% over the past 12 months.
In other sector news,
(+) ADAT, (+226.2%) Agrees to merge with privately held AEON Clical Laboratories, with ADAT issuing Series E convertible stock equal to 19.9% of the combined companies. AEON shareholders also will acquire another 5% stake at closing.
(-) VWR, (-0.0%) Announces plans to redeem all $750 million of its 7.25% senior notes due 2017, paying 102.719% of the principal amount plus any unpaid interest up to the expected Sept. 28 redemption date.
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