Dividend.com: Celgene Clobbered on Warning

Celgene Shares Hit Hard on Warning

Shares of Celgene (CELG Quote) were down nearly 15% after the biotech company said that first-quarter and full-year profit and sales would miss Wall Street expectations.

The company is expecting revenue to be about $600 million in the quarter, below expectations for $647.1 million. The full-year EPS is expected to come in at the low end of the $2.05 to $2.15 per share range, missing the consensus for $2.17.

Management cited the weak global economy for the lighter forecast.

The company is nearly 50% of all-time highs of $75 a share hit last summer. The company has broken through key technical support of $40 this morning and there is quite a gap down to the $20 mark to find another significant support area.

If the shares can manage to firm up, we see overhead resistance around the $45-$48 levels. We do not currently rate this stock, but do follow the name and biotech sector very closely.

Celgene does not currently pay a dividend.

Danaher Shares Downgraded by JPMorgan

Shares of Danaher (DHR Quote) were down nearly 3% in early trading after the company's shares were downgraded to neutral from overweight by JPMorgan, which said continued outperformance relative to peers could be difficult.

The company recently announced that fourth-quarter profit fell nearly 5% to $305.7 million, or 92 cents a share from $320.2 million, or 97 cents a share in the fourth quarter of 2007.

We have avoided shares of DHR since our early June coverage began, when the stock was trading at $79.19. The company has a dividend yield of .22%, based on Friday's closing stock price of $54.22.