Health Stocks in Motion
Shares of Amerigroup (AGP) were among the worst-performing health-related stocks Tuesday, falling 6% after the company warned that second-quarter earnings would fall short of Wall Street expectations.
The managed health care provider expects second-quarter earnings of 42 cents to 43 cents a share. Analysts polled by Thomson First Call had been expecting earnings of 48 cents a share. Among other things, the company blamed cost pressure in New Jersey and Florida for the shortfall. Amerigroup also suffered from increased medical utilization in Fort Worth, Texas.
Looking ahead, Amerigroup now expects 2005 earnings of $1.73 to $1.78 a share, down from previous guidance of $1.90 to $1.98 a share. Analysts had been expecting earnings of $1.94 a share. Shares were trading down $2.84 to $41.68.
Sepracor (SEPR) traded actively after the company reported a second-quarter loss that was narrower than expected. The pharmaceutical company posted a loss of $7.4 million, or 7 cents a share, on sales of $185.1 million. Analysts were expecting a much larger loss of 68 cents a share on lower sales of $118.6 million. A year ago, the company reported a loss of $81.1 million, or 93 cents a share, on sales of $70 million. Shares were trading down 63 cents to $58.99 on volume of 4.6 million shares, or nearly three times its normal daily average.Shares of ICU Medical (ICUI) rose 7% after the medical device maker posted second-quarter earnings that were better than expected. The company earned $4.7 million, or 31 cents a share, on sales of $40.7 million. Analysts were expecting earnings of 22 cents a share. A year ago, the company earned $3.4 million, or 23 cents a share, on sales of $21.7 million. Second-quarter results were fueled by the company's CLAVE product line and by strong sales of safe medical connectors and custom intravenous systems to Hospira (HSP) and other sales channels, it said. Looking ahead, the company now expects 2005 earnings of $1.06 to $1.08 a share on sales of $140 million. Analysts had been expecting earnings of 98 cents a share. Shares were trading up $2.26 to $34.15.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV