Markets

Sector Update: Health Care

Health care stocks were sharply higher today with the NYSE Health Care Sector Index climbing 1.5% and shares of health care companies in the S&P 500 jumping nearly 1.7% as a group.

In company news, shares of IPC -The Hospitalist Company ( IPCM ) slid to a two year low after the hospital patient-services company missed Wall Street estimates with its Q3 results and cut its FY14 forecasts below the consensus views.

The company earned $0.57 per share during the September quarter, excluding non-recurring items, lagging the the Capital IQ consensus by $0.03 per share. Revenues rose 13.9% year over year to $169.76 million, trailing analyst opinion by around $8.29 million.

It lowered its outlook for adjusted FY14 EPS by $0.22 per share from its prior guidance to a new range of $2.23 to $2.29 per share, missing estimates by at least $0.13 per share. The company also trimmed expected revenue by $28 million to $692 million to $698 million, lagging the Street view by at least $19.85 million.

IPCM shares were down more than 16% at $39.36 apiece heading into today's close, earlier sinking to its worst price since the final week of October 2012 at $36.66 a share. Through yesterday's close, the stock has declined more than 28% over the past 12 months.

In other sector news,

(+) CPXX, Prices $12.9 mln public offering at $1.95 per unit, with each unit consisting of one share of common stock and a 0.1 of a five-year warrant with an exercise price of $3.58 a share.

(-) ADHD, Preliminary data from Phase III testing of its MDX drug candidate does not show an advantage for the drug over a placebo in reducing several adult attention-deficit/hyperactivity disorder symptoms based on patient observations.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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