Health Stocks in Motion

Shares of FoxHollow Technologies(FOXH) were among the best-performing health-related stocks Thursday, rising 18% after the company posted second-quarter results that topped Wall Street forecasts.

The company, which makes minimally invasive plaque excision devices, reported a loss of $3.4 million, or 15 cents a share, on sales of $28.7 million. Results included stock-based compensation expenses of $1.9 million. Analysts polled by Thomson First Call were expecting a loss of 23 cents a share on sales of $25.3 million. Gross margins came in at 69%, up from 59% during the first quarter, and up from 19% a year ago.

Looking ahead, FoxHollow forecast a third-quarter loss of $500,000 to $1 million on sales of $32 million to $34 million. Analysts are expecting a loss of $3.1 million, or 13 cents a share, on sales of $28 million. During the fourth quarter, the company expects to be profitable. Analysts were expecting a loss of 5 cents a share. For the full year, the company now expects a loss of $5.5 million to $7 million, lower than previous guidance of $8 million to $10 million. Sales are now expected to be between $120 million and $125 million, well above previous guidance of $99 million to $105 million. Analysts had been expecting a loss of $16.4 million, or 72 cents a share, on sales of $106.1 million. Shares were trading up $7.76 to $51.35.

Orchid Cellmark(ORCH) fell 14% after the company posted disappointing second-quarter results and cut its full-year sales outlook. The provider of identity DNA testing services reported a loss of $1.8 million, or 7 cents a share, on sales of $15.8 million. Analysts were expecting a loss of 2 cents a share on sales of $18.3 million. A year ago the company reported a loss of $2.1 million, or 10 cents a share, on sales of $15 million. Year-ago results included a loss of 2 cents a share from discontinued operations. Looking ahead, Orchid Cellmark now expects 2005 sales of $72 million to $75 million, down from previous guidance of $75 million to $78 million. Average gross margin is now expected to be about 44%, down from earlier guidance of 47%. Analysts are expecting earnings of 6 cents a share on sales of $77.2 million. Shares were trading down $1.39 to $8.85.