Markets

Sector Update: Healthcare

Healthcare stocks gave up small gains earlier in today's session and were finishing today with small declines and the NYSE Healthcare Sector Index declining about 0.2% and shares of healthcare companies in the S&P 500 falling 0.1% as a group.

In company news, Enzymotec ( ENZY ) shares tumbled over 30%, falling to an all-time low after reporting Q1 revenue trailing Wall Street projections.

The Israeli company developing lipid-based products reported a 29.7% year over year increase in revenue to $17.9 million during the three months ended March 31, lagging the Capital IQ consensus by $1.5 million. It earned $0.24 per share, beating analyst projections by $0.07 per share.

ENZY issued in-line guidance for the full year ending in December, forecasting EPS in a range of $0.64 to $0.94 on $90 million to $110 million in revenue. Analysts, on average, are looking for a $0.86 per share profit on just under $93 million in revenue.

The company's shares were down 29% at $14.35 a share in recent trade, earlier falling to $13.60 a share, its lowest price since its Sept. 27, 2013, initial public offering of stock.

Enzymotec also issued guidance for the full year 2014 of 64 cents a share to 94 cents a share, while analysts expect 86 cents a share. The company expects full year revenue based on the proportionate consolidation method of $90 million to $110 million, while analysts expect $92.95 million. Based on the equity method, Enzymotec expects revenue of $68 million to $85 million.

In other sector news,

(+) CNAT, Q1 net loss of $0.34 per share trails analyst estimates by $0.01. Company did not generate any revenue during the three months ended March 31.

(-) PETX, Q1 net loss of $0.34 per share matches Capital IQ consensus. The company had no revenue during the quarter.

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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