Ahead Of The Bell: Myriad Genetics Shares Rise

NEW YORK (AP) — Shares of Myriad Genetics Inc. traded higher Wednesday morning after the biotechnology company reported a larger-than-expected profit in its fiscal fourth quarter.

The Salt Lake City company is now fully focused on molecular diagnostics after spinning off its drug development and research business at the end of the fourth quarter. Myriad's adjusted profit of 37 cents per share was 15 cents ahead of its analyst estimates, although its revenue fell slightly short of their expectations.

In premarket trading, the stock jumped $3.12, or 12 percent, to $29.

Morgan Joseph analyst Shiv Kapoor found the quarterly results "unimpressive," however, and maintained a "Sell" rating on the stock. Kapoor said Myriad has reported weak growth in the last few quarters and lowered its outlook twice, and has doubts the company can reach its goal of 20 percent sales improvement in fiscal 2010.