Sector Update: Health Care
Healthcare stocks were broadly higher with the NYSE Healthcare Sector Index rising about 0.7% and shares of healthcare companies in the S&P 500 adding about 0.9% as a group.
In company news, WuXi PharmaTech ( WX ) rose Thursday after reporting Q2 net income and revenue that beat analyst estimates and raises its FY14 earnings forecast.
WX American depository shares were ahead about 8.6% at $34.99 apiece, matching its session high. The stock has traded within a 52-week range of $23.48 to $40.72 per ADS, rising 43.3% over the past 12 months.
GAAP net income for the three months ended June 30 fell 1% from year-ago levels to $29.3 million, or $0.41 per American depository share. Non-GAAP net income increased 4.5% year over year to $35.2 million, or $0.49 per ADS, beating expectations by $0.03 per ADS.
Revenues rose 14.8% year over year to $163.4 million, trailing the Capital IQ consensus by around $1.77 million.
For the current quarter ending in September, the company is forecasting $0.48 to 0.50 per ADS, in-line with $0.48 consensus. Projected Q3 revenue of $171 million to $173 million, trailing estimates by at least $1.01 million.
For the entire year, WX boosted its outlook for the bottom end of its adjusted earnings by $0.02 and the top end by $0.01 over its prior guidance to a new range of $1.82 to 1.86 per ADS, exceeding the Capital IQ consensus by at least $0.04 per ADS.
It also raised the bottom end of forecast range by $5 million to a new range of $665 million to $670 million, in-line with estimates looking for $669.74 million in FY14 revenue.
In other sector news,
(+) MDRX, (+8.6%) Extends partnership with Clinical Architecture, integrating its dbMotion health information exchange with Clinical's Symedical terminology management system and providing more efficient mapping tool and vocabularies distribution.
(-) CNAT, (-11.1%) Postpones release of Phase II testing of emricasan drug candidate in patients with nonalcoholic fatty liver disease until Q1 of 2015 from late 2014. Q2 net loss of $5.3 mln, or $0.34 per share, beats analyst estimates by $0.05 per share.
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