Health Stocks in Motion

Shares of Molina Healthcare(MOH Quote) were among the best-performing health-related stocks Friday, rising 18% after the managed care company posted third-quarter earnings that topped Wall Street's forecast, and lifted its full-year earnings projection.

The company earned $6.8 million, or 24 cents a share, well above the 15 cents a share that analysts polled by Thomson First Call were expecting. The company posted sales of $428.6 million, slightly shy of analysts' forecast of $430.1 million. Year-ago earnings were $16.4 million, or 59 cents a share, on sales of $330.8 million.

Molina now sees full-year earnings of 75 cents to 82 cents a share, up from its earlier guidance of 73 cents to 80 cents a share. Analysts forecast earnings of 75 cents a share. Molina shares recently gained $3.94 to $26.04.

Emdeon(HLTH Quote) slumped 15% after the health-information company posted third-quarter results and an outlook that disappointed investors. The company earned $14.1 million, or 4 cents a share, on sales of $323.2 million. Income before taxes and other items was $48.4 million, or 13 cents a share. Analysts were expecting earnings of 14 cents a share and sales of about $329 million.

"While our financial results were at the low end of our expectations for the third quarter, our goals remain unchanged, we believe our strategies are sound and we remain well positioned to deliver accelerated growth in 2006," the company said. Emdeon's year-ago earnings were $8.2 million, or 2 cents a share, while sales were $299.6 million. Income before taxes and other items was $38 million, or 11 cents a share, a year earlier.

Emdeon sees fourth-quarter income, before taxes and other items, of 13 cents to 14 cents a share, and sales of $320 million to $330 million. Analysts expect earnings of 15 cents a share on sales of $335.7 million.