Health Stocks in Motion

Updated from 2:18 p.m. EST

Shares of Anika Therapeutics(ANIK Quote) were among the best-performing health-related stocks Thursday, rising 27.3% after the company posted fourth-quarter earnings and sales that topped expectations.

The company earned $1.8 million, or 15 cents a share, on sales of $7.7 million. Analysts polled by Thomson First Call were expecting earnings of 6 cents a share on sales of $5 million. A year ago, the company earned $801,000, or 7 cents a share, on sales of $5 million. Expenses during the quarter jumped 48% compared to those of a year ago, primarily because of costs associated with Sarbanes-Oxley Act compliance.

Gross margins during the quarter increased to 57.3%, up from 54.7% a year ago. Excluding a one-time tax benefit, Anika earned $4.2 million, or 36 cents a share, on sales of $26.5 million during 2004. During 2003, the company earned $827,000, or 8 cents a share, on sales of $15.4 million. Shares traded up $2.48 to $11.55.

ResCare(RSCR Quote) fell 13.8% after the company posted fourth-quarter results and warned that first-quarter earnings would fall below expectations. The company, which provides services to people with disabilities and other special needs, earned $6.9 million, or 22 cents a share, on sales of $257.5 million. A year ago, the company earned $2.5 million, or 10 cents a share, on sales of $244 million. The most recent earnings included a tax benefit, while last year's results included a pretax charge of $2.5 million, or 6 cents a share. Analysts were expecting earnings of 21 cents a share on sales of $260.4 million in the just-completed fourth quarter.

Looking ahead, ResCare forecast first-quarter earnings of 15 cents to 18 cents a share. Analysts had been expecting earnings of 20 cents a share. The company said that first-quarter results would be hurt by historically higher first-quarter costs and by startup costs associated with a contract. Shares traded down $2.07 to $12.96.