Sector Update: Health Care Stocks Enjoying Broad-Based Gains; WuXi Pharmatech Near Session High After Q2 Results Top Street View
Top Healthcare Stocks
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 8.4% at $34.91 apiece, just 8 cents off 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.