Health Stocks in Motion

Shares of Conceptus(CPTS Quote) were among the best-performing health-related stocks Tuesday, rising 19% after the company said that its Essure birth-control device has been approved for reimbursement by UnitedHealth Group's(UNH Quote) UnitedHealthcare unit.

"This is excellent news for women covered by UHC who will want to avail themselves of our non-incisional approach to permanent birth control," the company said. The reimbursement goes into effect immediately. Shares were trading up $1.29 to $8.05.

Horizon Health(HORC Quote) rose 2% after the company posted third-quarter earnings that beat Wall Street forecasts. The company, which manages psychiatric and physical rehab programs, earned $3.5 million, or 24 cents a share, on sales of $57.9 million. Analysts polled by Thomson First Call were expecting earnings of 23 cents a share on sales of $57.1 million. A year ago, the company earned $2.7 million, or 24 cents a share, on sales of $44.8 million. Looking ahead, Horizon forecast 2005 earnings of $1 to $1.02 a share, which excludes items. Analysts are expecting earnings of $1.01 a share. Shares were trading up 47 cents to $24.62.

Shares of Manor Care(HCR Quote) fell 7% after the company warned that second-quarter earnings would fall short of expectations. Including a number of one-time items that totaled about 4 cents to 5 cents a share, the company expects to earn 41 cents to 43 cents a share during the second quarter. Analysts had been expecting earnings of 52 cents a share. The company said that cost management initiatives were not enough to offset revenue reductions that were caused by lower occupancy rates during the quarter. Shares were trading down $2.63 to $37.13.

Genentech(DNA Quote) rose 2% after the company turned in second-quarter results that topped forecasts. The biotech company earned $296.2 million, or 27 cents a share, on sales of $1.53 billion. Excluding items, the company would have earned $328.6 million, or 30 cents a share. Analysts were expecting earnings of 26 cents a share on sales of $1.49 billion. A year ago, the company reported pro forma earnings of $201.8 million, or 19 cents a share, on sales of $1.13 billion. Shares were trading up $1.39 to $84.89.