This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Health Stocks in Motion

Updated from 3:32 p.m. EDT

Shares of PDI (PDII) were among the worst-performing health-related stocks Tuesday, falling 22.3% after the company slashed its 2005 earnings and sales outlook.

The provider of outsourced sales and marketing services to the health care industry now expects earnings of 40 cents to 50 cents a share on sales of $310 million to $320 million, well below the $1.35 to $1.45 a share in earnings and $380 million to $390 million in sales previously forecast. Analysts polled by Thomson First Call had been expecting earnings of $1.36 a share on sales of $380.2 million. PDI blamed the poor outlook on anticipated new business wins that have not materialized, an unexpected cancellation of a contract with Novartis Pharmaceuticals -- a division of Novartis (NVS), higher costs related to the company's decision to add key resources to its business and concerns regarding the continuation of one contract for 100 representatives. Shares traded down $4 to $13.96.

Caremark Rx (CMX) fell 3.3% despite posting solid first-quarter results and raising its 2005 operating profit estimate. The manager of prescription benefits posted earnings of $197.5 million, or 43 cents a share, on sales of $8.38 billion. Results included a charge of $1.2 million. Analysts were expecting earnings of 43 cents a share on sales of $8.04 billion. Looking ahead, Caremark forecast second-quarter earnings of 45 cents to 46 cents a share, in line with expectations. For all of 2005, it forecast operating earnings of $1.92 to $1.94 a share, up from previous guidance of $1.88 to $1.92 a share. Analysts are expecting earnings of $1.91 a share. Shares traded down $1.33 to $38.79.

Despite posting a first-quarter sales shortfall, shares of Odyssey HealthCare (ODSY) rose 7.1%. The hospice care provider posted earnings of $5.3 million, or 15 cents a share, on sales of $87.8 million. First-quarter results were negatively affected by a $2.2 million accrual for the Medicare payment cap. Analysts were expecting earnings of 18 cents a share on sales of $89 million. Cash flow from operations during the quarter was $14.3 million. A year ago the company earned $7.9 million, or 21 cents a share, on sales of $84.7 million. Shares traded up 80 cents to $12.15.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AMED $26.78 -0.04%
AMGN $159.85 -2.71%
HNT $60.49 -0.69%
PDI $29.00 -0.14%
TEVA $62.30 -0.35%

Markets

DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs